10 Best Coal Stocks to Invest in Right Now

3. Warrior Met Coal Inc. (NYSE:HCC)

Number of Hedge Fund Investors: 32

Warrior Met Coal Inc. (NYSE:HCC) produces and exports non-thermal steelmaking metallurgical coal for steel production by metal manufacturers in Europe, South America, and Asia. It operates underground mines in Alabama and also sells natural gas that is obtained as a by-product from coal production.

While slow growth in China has been a cause of concern for HCC, it has a diversified client base across India and other emerging countries. It is another undervalued script in this list, with a trailing P/E of 7.41. The stock has been under pressure since the drop in EPS from $1.64 in Q3-23 to 0.80 in Q3-24. The performance, however, exceeded estimates with revenue and earnings higher by 1.2% and 12%, respectively. The 23% drop in quarterly sales can be considered an aberration with revenue projected to grow at 1.5% for the next three years. While this is lower than the overall industrial rate of 5.3%, favorable pricing of coal should restore profitability to a much higher level.