10 Best Coal Stocks to Invest in Right Now

7. SunCoke Energy Inc. (NYSE:SXC)

Number of Hedge Fund Investors: 24

SunCoke Energy Inc. (NYSE:SXC) is an independent producer of metallurgical and thermal coal in the Americas and Brazil. It also operates coke-making facilities in the United States and Brazil. SXC has entered into a 3-year agreement to manage coal assets at Kanawha River Terminal In another development, it managed to bag a deal with US Steel to supply coke through June 2025.

The third quarter performance has been terrific with net income jumping four folds y-o-y from $8.5 million to $33.3 million in Q3-24. The full-year EBITDA guidance has been revised upward from $240-255 million to $260-70 million primarily due to an improved performance in its Logistics business. Operating cash flows continue to grow with SXC offering a generous dividend opportunity. The stock currently trades close to 10x its trailing 12-month EPS. Given the potential growth, the valuation appears to be attractive at its current price level.