11 Most Promising Small-Cap Stocks According to Analysts

7. Peabody Energy Corp. (NYSE:BTU)

Market Capitalization as of April 23: $1.47 billion

Number of Hedge Fund Holders: 41

Average Upside Potential as of April 23: 61.56%

Peabody Energy Corp. (NYSE:BTU) engages in the coal mining business. It operates through Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, Other US Thermal, and Corporate & Other segments. The company also engages in the trading of coal and freight-related contracts, as well as provides transportation-related services.

Peabody’s Seaborne Metallurgical (Met) segment is positioned for growth, with the pending acquisition of premium hard coking coal mines from Anglo American. In Q4 2024, this segment reported $23 million of adjusted EBITDA on shipments of 8.5 million tons for the full year, which was a 0.4 million ton increase year-over-year. The average realized price decreased by about $21 per ton in Q4 sequentially due to a higher mix of Shoal Creek sales.

The Anglo American acquisition is expected to transform Peabody Energy Corp. (NYSE:BTU) into a leading seaborne met coal supplier, with projections indicating that ~three-fourths of the company’s EBITDA in 2026 will come from metallurgical coal. The acquired mines are anticipated to produce 11.3 million tons of saleable coal in the first full year of ownership, which is 2026.