10 Best Coal Stocks to Invest in Right Now

2. Arch Resources Inc. (NYSE:ARCH)

Number of Hedge Fund Investors: 37

Arch Resources Inc. (NYSE:ARCH) engages in the production and sale of metallurgical products. It operates in two segments, Metallurgical and Thermal. The company operates active mines. It is owned or controlled primarily through long-term leases of coal land in the US. ARCH was merged with Consol Energy to form Core Natural Resources.

The third quarter result has been disappointing with an EPS of -$0.34 against an estimate of $2.51. ARCH’s sales were impacted by a three-week outage of the shiploader in Baltimore, reducing coal shipments by 200,000 tons in the quarter. On a brighter note, the thermal segment turned positive due to cost-cutting measures in the Powder River Basin operations. ARCH should generate better margins as its legacy contracts in the West Elk mine have expired in 2024. A better output from the Leer mine is also expected in 2025 due to a more favorable geographical position. The merger with Consol should offer better logistic capabilities and synergies worth $110-140 million.