5 Oversold Energy Stocks You Can Buy Right Now

3. CONSOL Energy Inc. (NYSE:CEIX)

14-day RSI: 37.15

Number of Hedge Fund Holders: 29

CONSOL Energy Inc. (NYSE:CEIX) is a thermal coal company headquartered in Pennsylvania. The company has over 620 million tons of recoverable coal reserves from three mines. CONSOL Energy Inc. (NYSE:CEIX) has a 14-day RSI of 37.15 at the time of writing on March 13.

Greenlight Capital is the largest shareholder of CONSOL Energy Inc. (NYSE:CEIX) in Q4 2023, with 2.1 million shares worth $211.67 million. Additionally, 29 hedge funds tracked by Insider Monkey had stakes in the company as of December 31, 2023, compared to 25 in the third quarter.

Black Bear Value Partners stated the following regarding CONSOL Energy Inc. (NYSE:CEIX) in its fourth quarter 2023 investor letter:

“We have a large investment across the energy & commodity spaces. We have not developed enough energy or commodity resources to satisfy the near- and medium-term needs of the world as well as provide for a renewable/less-carbon intensive future.

CONSOL Energy Inc. (NYSE:CEIX) is an American energy company focused on the coal sector. The business has undergone a shift from being a majority producer of coal for domestic energy purposes to an export-driven producer of coal for non-power generation purposes.

While there is a negative stigma associated with coal (and some deserved) there are parts of the world that have limited energy alternatives and will require coal supply over the coming years. I expect the company to commit a large amount of the free-cash-flow to buying in cheap stock and the per share intrinsic value to grow substantially over the next 3 years.

Rough valuation thoughts on CONSOL…. Over the coming 2 years CEIX should generate $20-$40 in per share FCF. They own a marine terminal which is conservatively worth $15-$30 in per share value. Over the long-term the business should generate $300MM+ of annual FCF. At reasonable multiples this comes out to $60-$100 per share. Add these related pieces up and you will arrive at a price of $95-$170 vs. a $100 year-end stock price. Clearly in the short term, volumes and prices could be worse but over the medium-long term our downside seems limited given the lack of financial leverage.”