Here is what appears to be the good news:
- Demand from Europe is rising.
- Demand from China is rising.
- U.S. demand is rising as natural gas prices rise.
- Production costs are falling.
The not-so-good news is that prices remain weak, environmental policy in the United States is heavily weighted against coal, and falling production costs are due largely to mine closings.
Peabody may be the best positioned of all the U.S. coal producers, given its holdings in Australia. The stock even was upgraded to Outperform Friday morning at BMO Capital. The stock’s 52-week range is $14.34 to $29.84, and the consensus price target from Thomson/First Call is around $23.00.
Consol Energy Inc. (NYSE: CNX) has made a major move into natural gas production and said last week that it is considering “different alternatives to unlock additional value for our shareholders.” By some estimates, splitting the company’s coal and natural gas operations would give shareholders a gain of around 32%. The stock traded at $38.05 Friday mid-day, up 0.7%, in a 52-week range of $26.25 to $39.23. The high was posted earlier in the week. The consensus price target on the stock is around $44.00.
Arch Coal Inc. (NYSE: ACI) was downgraded to Underweight at Morgan Stanley earlier in the week because the company’s northern Appalachian coal competes with cheaper natural gas from the Marcellus and Utica shales. The stock’s 52-week range is $3.47 to $8.86, and it was trading at $3.97, down 0.7%, shortly before noon on Friday. The consensus price target for the stock is around $5.10.
Alpha Natural Resources Inc. (NYSE: ANR) is trying to catch the natural gas wave, having purchased leases to around 20,000 acres in the Marcellus shale play, but that is too small to be a game-changer for the company. The stock’s 52-week range is $4.78 to $10.74, and its consensus price target is around $7.10. Shares were trading down about 2% late Friday morning at $5.85.
James River Coal Co. (NASDAQ: JRCC) recently idled production at three of its Kentucky operations, and a September exchange offer for higher-coupon debt was less than a resounding vote of confidence in the company. The stock trades near $2.07, up 3%, in a 52-week range of $1.46 to $5.89. The consensus target price is around $2.40.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.