10 Best Coal Stocks to Invest in Right Now

Page 9 of 9

1. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Investors: 68

Teck Resources Limited (NYSE:TECK) operates through Steelmaking Coal, Copper, Zinc, and Energy segments with principal products that include principal products include copper, zinc, steelmaking coal, and blended bitumen. It sold its steelmaking coal business, EVR in 2024 to focus on copper, zinc and other metals business. The sale of its coal business has allowed TECK to buy back shares and pay back debt worth $2.75 billion.

EPS for Q3 was $0.44, down from $0.57 a year ago but provided a positive surprise of 22%. The guidance for the next quarter is positive with copper production higher by 50% due to higher throughput. Analysts at Raymond James and JP Morgan have revised their EPS estimates downwards but continue to have a favorable outlook on TECK with “Outperform” and “Overweight” ratings. The decision to offload the coal business may hurt the total earnings but it allows TECK to focus on the metals business which is set to have a better growth rate than the coal industry.

While we acknowledge the potential of TECK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TECK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9