10 Best Coal Stocks To Buy Now According to Short Sellers

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 69

Short % of Shares Outstanding: 1.23%

Headquartered in Vancouver, Canada, Teck Resources Limited (NYSE:TECK) is involved in the exploration, acquisition, development, production, and sale of natural resources. Its product range includes steelmaking coal, copper, zinc, industrial products, fertilizers, and other metals.

In Q2 2024, Teck Resources Limited (NYSE:TECK) reported a total revenue of $2.9 billion, a 10.1% increase, driven by record copper production (51,300 tons) and strong sales in the steelmaking coal segment, which contributed 52% of total revenue. Production from all coal plants was strong in Q2, driven by improved plant reliability.

Net profit declined by 28.8%, primarily due to higher operating costs from the ramp-up of Quebrada Blanca (QB) Phase 2 and the impact of non-controlling interest (NCI) after the sale of the coal business. Additionally, Teck reported an EPS of $0.573, beating analysts’ expectations.

In terms of liquidity, Teck Resources Limited (NYSE:TECK)’s position strengthened with $6.4 billion in cash, including $5.4 billion from the sale of the coal business, and a net cash position of $2.1 billion after debt repayments.

In September 2024, the company unveiled a new structure of two regional divisions: North America and Latin America, to sharpen its focus on energy transition metals. The restructuring aims to boost copper growth, streamline operations, and enhance shareholder value.

Teck’s 17.2% YTD gain is driven by strong copper growth, the QB ramp-up, and the sale of its coal business, positioning the company as a pure-play energy transition metals company.

As of Q2 2024, 69 hedge funds, with a combined investment of $2.0 billion, are bullish on the stock, according to Insider Monkey’s database.