Jim Cramer Recently Shed Light on These 9 Stocks

5. Peabody Energy Corporation (NYSE:BTU)

Number of Hedge Fund Holders: 25

Cramer noted that Peabody Energy Corporation (NYSE:BTU) is cheap but also mentioned that the company trades like a steel company rather than a coal company.

“… Who’s the winner? It’s hard as the coal cohort is made up of companies that mine coal for steel production and others that mine coal for utilities. But the latter has been such a dog for so long that the US companies have tried to merge their way into steel-making coal and to lessen exposure in utilities. Peabody Energy and Core Natural Resources are the big ones. I think they’re cheap, but they trade more like steel companies than coal companies.”

Peabody Energy (NYSE:BTU) is a coal mining company involved in the extraction, preparation, and sale of thermal and metallurgical coal. In April 2024, Cramer mentioned the company as he remarked, “No, I’m not a coal guy…I do not want to own BTU, and I think it should be sold.”

Meanwhile, on January 5, Jefferies analyst Christopher LaFemina reduced the price target for Peabody Energy (NYSE:BTU) stock to $26 from $30 while maintaining a Buy rating on the stock. The firm has adopted a more cautious stance on the near-term outlook for the metals and mining sector, citing cyclical factors and a belief that consensus estimates may be at risk of being too high.

However, Jefferies believes it is too late to downgrade ratings and remains focused on buying “preferred” miners and steel producers following recent market weaknesses. The firm expects stronger demand to emerge in 2026 and 2027, which should result in significantly higher prices for key commodities and for the shares of many companies.