5 Best Coal Mining Stocks To Buy Today

3. Arch Resources, Inc. (NYSE:ARCH)

Number of Hedge Fund Holders: 34

Arch Resources, Inc. (NYSE:ARCH) specializes in the production and distribution of metallurgical coal products. Its customer base includes utility, industrial, and steel producers worldwide. The company was established in 1969 and is headquartered in St. Louis, Missouri. Arch Resources, Inc. (NYSE:ARCH) is one of the best coal stocks to invest in. On February 16, the company reported a Q4 GAAP EPS of $23.18 and a revenue of $859.4 million, outperforming Wall Street estimates by $10.29 and $61.03 million, respectively. 

On February 17, David Gagliano, an analyst at BMO Capital, increased the firm’s target price on Arch Resources, Inc. (NYSE:ARCH)’s shares from $185 to $200. The analyst maintained an Outperform rating on the shares following the company’s Q4 results, which exceeded expectations. According to the analyst’s research note, Arch Resources, Inc. (NYSE:ARCH) is well-positioned to provide substantial cash returns to its shareholders in 2023, particularly due to recent price increases in metallurgical coal.

According to Insider Monkey’s fourth quarter database, 34 hedge funds were long Arch Resources, Inc. (NYSE:ARCH), compared to 38 funds in the earlier quarter. 

Here is what Kingdom Capital Advisor specifically said about Arch Resources, Inc. (NYSE:ARCH) in its Q2 2022 investor letter:

“Arch Resources, Inc. (NYSE:ARCH): When we began following Arch, we focused on their metallurgical coal segment and viewed their thermal coal segment as a source of potential upside. However, especially since Russia’s invasion of Ukraine, energy security has surged into focus and Arch’s thermal operation now faces higher spot prices than their met sales. Arch retired most of their convertible debt during Q2, another example of their strong commitment to delivering shareholder value. Estimates for Q2 suggest Arch should earn over $20/share vs a $130 share price, and they remain committed to distributing half of their cash flow via dividends.”