5 Best Stocks to Buy for Medium Term

2. CONSOL Energy Inc. (NYSE:CEIX)

Dividend Yield as of February 27: 8.06%

Number of Hedge Fund Holders: 32

CONSOL Energy Inc. (NYSE:CEIX) is an energy company based in Canonsburg, Pennsylvania. It produces and exports bituminous coal in the US.

Riley’s Lucas Pipes reiterated a Buy rating on CONSOL Energy Inc. (NYSE:CEIX) shares on January 17 and placed an $84 price target on the stock.

CONSOL Energy Inc. (NYSE:CEIX) has a dividend payout ratio of 16.21%. The company generated revenues of $637.15 million in the fourth quarter, representing a revenue growth rate of 32.57% year-over-year. As of this February, company management has also paid off almost all of the company’s debt, and has committed to returning about 35%-50% of its free cash flow to shareholders.

There were 32 hedge funds long CONSOL Energy Inc. (NYSE:CEIX) in the fourth quarter, with a total stake value of $298 million.

Greenlight Capital, an investment management company, mentioned CONSOL Energy Inc. (NYSE:CEIX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“As CONSOL Energy Inc. (NYSE:CEIX) rode a surge in coal prices, the shares soared from $22.71 to $65.00 and the company paid $2.05 per share in dividends. In 2022, part of the higher coal prices were absorbed by hedges and forward contracts at what turned out to be below-market prices. Even so, we believe the company ended the year with no net debt. From here, with the below market contracts mostly behind, we expect the higher prices to translate directly into much higher earnings, with most of the free cash flow to be returned to shareholders. Much of the pricing in 2023 and some of the pricing in 2024 is locked in. As a result, we believe that the company will generate free cash flow over the next two years equal to its current market capitalization. While thermal coal will probably never be cool to own, we believe the returns for owning CEIX should continue to be hot.”