In this article we discuss the 5 best coal stocks to buy now. If you want to read our detailed analysis of the coal industry, go directly to the 10 Best Coal Stocks to Buy Now.
5. Peabody Energy Corporation (NYSE: BTU)
Number of Hedge Fund Holders: 20
Market Cap: $503.296 million
Peabody Energy Corporation (NYSE: BTU) is a coal mining company that was founded in 1883 and is headquartered in St. Louis, Missouri. The company is involved in the mining, preparation, and sale of thermal coal in the US, Taiwan, Australia, Japan, India, China, Vietnam, and South Korea. As of 2020, it owned interests in 17 coal mining operations located in the United States and Australia. Peabody Energy Corporation (NYSE: BTU) announced a revenue of $737.2 million in the fourth quarter of 2020 while the adjusted EBITDA amounted to $103.2 million.
However, Peabody has faced severe losses amid coal price drop and lack of demand. The company, which emerged from bankruptcy in 2017, might be a good long-term play for those who are patient. However, in the short term, BTU is set to see a lot of volatility.
At the end of the fourth quarter of 2020, 20 hedge funds in the database of Insider Monkey held stakes worth $107 million in the firm. In the preceding quarter, 20 hedge funds were holding stakes worth only $99.9 million.
4. SunCoke Energy, Inc. (NYSE: SXC)
Number of Hedge Fund Holders: 19
Market Cap: $635.611 million
SunCoke Energy, Inc. (NYSE: SXC) is an independent producer of coke coal in the Americas and Brazil. Its products include metallurgical and thermal coal. The company is based in Lisle, Illinois and was founded in 1960. SunCoke Energy, Inc. (NYSE: SXC) had a net income of $156 million, or $0.09 per share for the fiscal year 2020. The full year adjusted EBITDA amounted to $205.9 million which surpassed expectations. For the fiscal year 2021, the company expects the consolidated adjusted EBITDA to be $215 to $230 million.
19 hedge funds in the database of Insider Monkey held stakes worth $65.9 million in SunCoke Energy, Inc. (NYSE: SXC) in fourth quarter of 2020.
3. Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Number of Hedge Fund Holders: 6
Market Cap: $742.819 million
Alliance Resource Partners, L.P. (NASDAQ: ARLP) is a diversified natural resource company that produces and markets coal primarily to utilities and industrial users in the United States. Alliance Resource Partners, LP (NASDAQ: ARPL) is officially the fifth-largest coal producer in the United States. As of 2020, the company had approximately 1.65 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. The company’s performance in the first quarter of 2021 was beyond expectations making it one of the 10 best coal stocks to buy now. Adjusted net income for the 2021 quarter increased 102.5% to $24.7 million compared to $12.2 million for the same quarter in 2020. Its Board of Directors recently declared a cash distribution to unitholders of $0.10 per for the 2021 quarter, which is payable on May 14, 2021 to all unitholders of record. Overall, the total revenue in 2020 was $1.3 billion with a profit margin of 3.11%. With massive operations throughout the US, the company is on track to achieve its 2021 financial goals.
At the end of the fourth quarter of 2020, 6 hedge funds in the database of Insider Monkey held stakes worth $29 million in Arch Resources, Inc. (NYSE: ARCH) which is a slight decrease from 7 hedge funds the previous quarter holding stakes worth $7.1 million.
2. Arch Resources, Inc. (NYSE: ARCH)
Number of Hedge Fund Holders: 24
Market Cap: $777.246 million
Arch Resources, Inc. (NYSE: ARCH) was founded in 1969 and is headquartered in St. Louis, Missouri. It produces and sells metallurgical and thermal coal from underground and surface mines. As of 2020, the company has operations in seven active coal mines and sells its products to steel producers, industries, and utility companies located in the US, Asia, Europe, South America, and Africa. Arch Resources, Inc. (NYSE: ARCH) is now trying to make their coal production activities more environmentally friendly to address the growing concerns about coal and its negative impact on the environment. Arch Resources, Inc. (NYSE: ARCH)’s total revenue in 2020 was $1.46 billion and the earnings per share was reported to be $0.45. Despite the challenges created by the pandemic, Arch made significant progress on several strategic objectives during 2020 and maintained excellent momentum in their Leer South longwall mine making it one of the best coal stocks to buy now.
At the end of the fourth quarter of 2020, 24 hedge funds in the database of Insider Monkey held stakes worth $207 million in the firm which is a slight decrease from 26 hedge funds in the preceding quarter holding stakes worth $211 million.
1. Warrior Met Coal, Inc. (NYSE: HCC)
Number of Hedge Fund Holders: 25
Market Cap: $829.741 million
Warrior Met Coal, Inc. (NYSE: HCC) was founded in 2015 and is headquartered in Brookwood, Alabama. It produces and exports non-thermal metallurgical coal for the steel industry. It operates two underground mines located in Alabama. The company sells its metallurgical coal to a customer base of blast furnace steel producers located primarily in Europe, South America, and Asia. It also sells natural gas, which is extracted as a byproduct from coal production Warrior Met Coal, Inc. (NYSE: HCC) reported a net loss for the first quarter of 2021 of $21.4 million, or $0.42 per diluted share, compared to net income of $21.5 million, or $0.42 per diluted share, in the first quarter of 2020. Adjusted net income per share for the first quarter of 2021 was $0.08 per diluted share. The Adjusted EBITDA was reported to be $47.1 million in the first quarter of 2021. Sales volume in the first quarter of 2021 was 2.0 million short tons compared to 1.8 million short tons in the first quarter of 2020. Total revenues were $213.8 million for the first quarter of 2021. The company generated positive cash flows from operating activities in the first quarter of 2021 of $45.2 million, compared to $21.0 million in the first quarter of 2020. Warrior is on track to be one of the best coal stocks to buy now.
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