In this article, we discuss the 11 Best Coal Stocks to Buy According to Hedge Funds.
The most recent forecast from the Energy Information Administration (EIA) predicts that the demand for power in the United States will surpass previous records in 2025 and 2026. Power consumption is expected to increase to 4,187 billion kWh in 2025 and 4,305 billion kWh in 2026, both exceeding the record-breaking 4,097 billion kWh in 2024. Rising residential and business usage, along with the enormous energy requirements of data centers powered by AI and cryptocurrency activities, are the main drivers of this surge.
Coal is expected to remain stable, edging up from 16% in 2024 to 17% in 2025 before easing back again in 2026. Renewables, meanwhile, are steadily increasing their share of the grid—from 23% in 2024 to 26% in 2026. By contrast, natural gas is expected to decline slightly from 42% in 2024 to 40% in subsequent years.
This dynamic highlights how coal continues to serve as a reliable source of electricity in the United States, despite the ongoing shift to cleaner alternatives. The rising demand presents opportunities for investors in certain coal producers that stand to benefit from long-term contracts, stable pricing, and a sustained reliance on coal-fired electricity during demand peaks.
In light of this, the best coal stocks to buy can offer a balanced mix of conservative positioning and income potential as global energy consumption continues to rise. With this backdrop, let’s move on to our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Our Methodology
To curate our list of the 11 Best Coal Stocks to Buy According to Hedge Funds, we used the Finviz screener to extract a list of coal stocks. Next, we assessed hedge fund sentiment surrounding each stock using Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds. We present our list of the 11 Best Coal Stocks to Buy According to Hedge Funds in ascending order based on the number of hedge funds holding stakes in each stock as of Q2 2025.
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11. NACCO Industries, Inc. (NYSE:NC)
Number of Hedge Fund Holders: 5
NACCO Industries, Inc. (NYSE:NC) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
NACCO Industries, Inc. (NYSE:NC) announced on September 11, 2025, that shareholders of record as of September 2 will receive a quarterly dividend of $0.2525 per share on September 15. With six consecutive years of dividend increases and 55 years of uninterrupted payments, the company’s longstanding dedication to shareholder returns is demonstrated by the payout, which represents a 2.81% yield. NACCO’s reputation for reliable performance has been strengthened by its 11% dividend growth rate over the past 12 months.
NACCO Industries, Inc. (NYSE:NC) is involved in coal mining, contract mining services for minerals and aggregates, and coal, oil, and gas royalty leasing. It is one of the Best Coal Stocks.
10. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 8
With significant hedge fund interest, Alliance Resource Partners, L.P. (NASDAQ:ARLP) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) hit a 52-week low, closing at $22.21 on September 11, 2025. The stock’s dedication to shareholders is demonstrated by its strong 10.56% dividend yield and 27 years of consistent payouts, even during the industry downturn. Shares look cheap with a P/E ratio of 12.49, but the energy industry’s problems and the state of the market as a whole are major factors. Investors are now keeping a close eye on Alliance to see if it can rebound from this setback.
In addition to producing coal, managing royalties, and leasing oil and gas assets, Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a diversified natural resources company that provides mining technology solutions across the United States. It is one of the Best Coal Stocks.
9. Natural Resource Partners L.P. (NYSE:NRP)
Number of Hedge Fund Holders: 8
Natural Resource Partners L.P. (NYSE:NRP) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Resilience in the face of one of the most challenging commodity market conditions in recent memory was highlighted in Natural Resource Partners L.P. (NYSE:NRP)’s Q2 2025 earnings, released on August 6, 2025.
Despite lower prices for thermal and metallurgical coal, the partnership reported $34 million in net income and $46 million in free cash flow, bolstered by $40 million in mineral rights revenues. With only $3 million in net income, the soda ash segment remained under pressure due to global oversupply and weak demand.
Nevertheless, Natural Resource Partners L.P. (NYSE:NRP) emphasized stability by sticking to its quarterly dividend of $0.75 per common unit. To position the company to significantly increase distributions in August next year, management reiterated its deleveraging strategy and projected that nearly all debt could be paid off by mid-2026. Given the cyclical lows in the coal and soda ash markets, NRP’s capacity to produce steady cash flow highlights the advantages of its royalty-based structure and cost control.
Using coal, soda ash, trona, aggregates, and associated infrastructure, Natural Resource Partners L.P. (NYSE:NRP) generates royalties from the ownership and leasing of mineral resources in the United States. It is one of the Best Coal Stocks.
8. Ramaco Resources, Inc. (NASDAQ:METC)
Number of Hedge Fund Holders: 14
With significant hedge fund interest, Ramaco Resources, Inc. (NASDAQ:METC) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
On September 8, 2025, Ramaco Resources, Inc. (NASDAQ:METC) revealed the finalized ratio for its previously announced third-quarter Class B common stock dividend. According to the closing price of $16.00 on the record date, shareholders of record as of September 5 will receive 0.011988 shares of Class B stock for each share held.
On September 19, 2025, the dividend—equal to $0.1918 per share—will be paid out. Ramaco Resources, Inc. (NASDAQ:METC) will pay cash in place of fractional shares based on the fair market value at the time of distribution. The action advances the company’s expanding portfolio in rare earth minerals and metallurgical coal while demonstrating its emphasis on shareholder returns.
To meet the needs of the domestic and global steel and energy industries, Ramaco Resources, Inc. (NASDAQ:METC) develops and runs metallurgical coal mines while branching out into rare earth elements and key minerals. It is one of the Best Coal Stocks.
7. Hallador Energy Company (NASDAQ:HNRG)
Number of Hedge Fund Holders: 26
Hallador Energy Company (NASDAQ:HNRG) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Hallador Energy Company (NASDAQ:HNRG) surprised Wall Street on August 11, 2025, when it announced Q2 EPS of $0.19, beating forecasts of a $0.15 loss. Despite a planned outage at one of its Merom generating units and a seasonal market downturn, the company witnessed increases in sales, net income, and adjusted EBITDA year over year. While inventory levels increased in anticipation of a stronger second half, challenges were mitigated by improved coal recovery rates, cost efficiency gains, and higher late-June prices.
To increase liquidity and expand debt flexibility, Hallador Energy Company (NASDAQ:HNRG) also completed a $35 million sale of prepaid energy contracts. Hallador is positioning itself for strategic growth by continuing to pursue long-term PPA prospects and the potential expansion of dispatchable generation assets in response to the growing need for dependable baseload electricity.
While pursuing prospects in long-term power contracts and diverse energy assets, Hallador Energy Company (NASDAQ:HNRG) generates steam coal for power generation and runs the Merom Generating Station, providing baseload electricity. It is one of the Best Coal Stocks.
6. SunCoke Energy, Inc. (NYSE:SXC)
Number of Hedge Fund Holders: 27
With significant hedge fund interest, SunCoke Energy, Inc. (NYSE:SXC) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Nathan Martin, an analyst at Benchmark Co., reiterated his buy recommendation for SunCoke Energy, Inc. (NYSE:SXC) on July 31, 2025, with a price target of $13.00. Martin cited his trust in the company’s potential despite recent earnings hurdles. Lower-priced spot sales and reduced CMT handling volumes caused SunCoke to report lower Q2 adjusted EBITDA; nevertheless, management kept full-year guidance, indicating optimism for improved performance in the future.
Growth is anticipated to be supported by strategic initiatives like the Phoenix acquisition and KRT development, while current contract talks and projects such as Granite City’s GPI provide additional upside potential. Analysts see resilience in SunCoke Energy, Inc. (NYSE:SXC)’s operations, which supports a positive long-term outlook, as evidenced by adjusted capital expenditures and improved Q3 EBITDA forecasts.
In addition to producing coke in the United States and Brazil, SunCoke Energy, Inc. (NYSE:SXC) offers mixing, coal handling, and logistical services to the steel, utility, and manufacturing sectors. It is one of the Best Coal Stocks.
5. BHP Group (NYSE:BHP)
Number of Hedge Fund Holders: 29
BHP Group (NYSE:BHP) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
The newly announced $53 billion merger between Anglo American and Teck Resources, which intends to build a copper-focused powerhouse, seemed unlikely to be disrupted by BHP Group (NYSE:BHP)’s actions as of September 10, 2025.
BHP Group (NYSE:BHP) has focused on smaller, value-driven copper projects since dropping its $49 billion offer for Anglo last year. These include increasing production at Chile’s Escondida and acquiring a $2 billion share in Argentina’s Josemaria mine. CEO Mike Henry has stated that the company’s near-term prudence is influenced by leadership changes and the continued scarcity of appealing large-scale M&A options. Investors view BHP’s present approach as conservative and in line with long-term growth aspirations, despite suggestions from some bankers that the company may reverse course if the Anglo-Teck transaction fails.
Serving markets all over the world, BHP Group (NYSE:BHP) is a global resources company that mines copper, iron ore, coal, nickel, potash, and other commodities. It is one of the Best Coal Stocks.
4. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Number of Hedge Fund Holders: 29
With significant hedge fund interest, Alpha Metallurgical Resources, Inc. (NYSE:AMR) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Alpha Metallurgical Resources, Inc. (NYSE:AMR) posted second-quarter earnings on August 8, 2025, which exceeded expectations. The company reported a per-share loss of $0.38 instead of the expected $2.38 loss. Coal sales costs dropped to $100.06 per ton, the company’s best result since 2021, because of increased operating efficiency. The company delivered 3.9 million tons and produced adjusted EBITDA of $46.1 million.
Citing diligent cost control, management reduced SG&A expectations and yearly cost guidance. With liquidity up 15% sequentially to $557 million, the board was able to resume its share buyback program following a five-quarter break. Even if the price of metallurgical coal has fallen to multi-year lows, market balance may be improved by China’s attempts to alleviate overcapacity and persistent supply disruptions worldwide. Alpha Metallurgical Resources, Inc. (NYSE:AMR) is positioned for long-term growth despite short-term volatility because of Alpha’s confirmation of progress at its Kingston Wildcat project, where the first coal is anticipated late this year.
Additionally, Lucas Pipes, a B. Riley Financial analyst, reaffirmed a ‘Buy’ rating on Alpha Metallurgical Resources on August 13, 2025, with a price target of $185.00.
With activities including mining, processing, and export logistics, Alpha Metallurgical Resources, Inc. is a top supplier of metallurgical coal used in steelmaking in the United States. It is one of the Best Coal Stocks.
3. Warrior Met Coal, Inc. (NYSE:HCC)
Number of Hedge Fund Holders: 30
Warrior Met Coal, Inc. (NYSE:HCC) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
The Second Amended and Restated Asset-Based Revolving Credit facility was amended and extended by Warrior Met Coal, Inc. (NYSE:HCC) on September 2, 2025. This increased aggregate commitment by $27 million to $143 million and pushed the maturity date to August 28, 2030, or earlier if its 7.875% Senior Notes due 2028 are still outstanding. Updates to borrowing base calculations and other provisions are also included in the updated facility.
The longwall startup is anticipated to increase yearly run-rate volumes by approximately 75% as part of Warrior Met Coal, Inc. (NYSE:HCC)’s revolutionary Blue Creek development project. The increased liquidity, according to management, fortifies the company’s balance sheet and guarantees sufficient financial flexibility as Blue Creek ramps up to full production.
Warrior Met Coal, Inc. (NYSE:HCC)’s position as a major global supplier to steelmakers on several continents will be strengthened by the project’s premium hard coking coal, which has good coking qualities and low sulfur.
Warrior Met Coal, Inc. (NYSE:HCC) has extensive underground longwall mines in Alabama and produces high-quality metallurgical coal that is necessary for the production of steel worldwide. It is one of the Best Coal Stocks.
2. Peabody Energy Corporation (NYSE:BTU)
With significant hedge fund interest, Peabody Energy Corporation (NYSE:BTU) secures a spot on our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Riley kept its ‘Buy’ rating on Peabody Energy Corporation (NYSE:BTU) after raising its price objective from $18 to $24 on September 9, 2025. Even after Peabody terminated its purchase agreements with Anglo American—a move that creates medium-term uncertainty—the company said the adjustment reflected higher profit potential on a standalone basis.
The company’s thermal coal sector is supported by domestic power demand and a more favorable regulatory environment, according to analysts, who still see upside potential in the stock. Peabody Energy Corporation (NYSE:BTU)’s diverse coal portfolio puts it in a position to seize short-term market opportunities despite recent transaction difficulties, especially as American utilities rely on stable baseload power supplies.
In both domestic and foreign markets, Peabody Energy Corporation (NYSE:BTU) mines and sells thermal and metallurgical coal to utilities, steel producers, and industrial clients. It is one of the Best Coal Stocks.
1. Core Natural Resources, Inc. (NYSE:CNR)
Number of Hedge Fund Holders: 45
Core Natural Resources, Inc. (NYSE:CNR) is included in our list of the 11 Best Coal Stocks to Buy According to Hedge Funds.
Nathan Martin of Benchmark Co. reiterated his ‘Buy’ rating for Core Natural Resources, Inc. (NYSE:CNR) on August 5, 2025, pointing to the company’s solid second-quarter performance and strategic momentum. Despite higher idling costs at Leer South, the business reported adjusted EBITDA of $144 million, above both benchmark and consensus projections.
Additionally, Core Natural Resources, Inc. (NYSE:CNR) increased shareholder returns and synergy targets by repurchasing $82 million in stock and paying out approximately $200 million in dividends and buybacks in the first half, exceeding its free cash flow levels. Operational resiliency is further demonstrated by updated sales and cost projections, a trend bolstered by favorable federal royalty rates and growing U.S. demand.
Martin emphasized Core Natural Resources, Inc. (NYSE:CNR)’s ability to deliver consistent performance and create long-term value in a difficult coal market, with further benefits from blending synergies once export markets recover.
Producing and exporting thermal and metallurgical coal, Core Natural Resources, Inc. (NYSE:CNR) runs the CONSOL Marine Terminal and the Pennsylvania Mining Complex for both domestic and foreign markets. It is one of the Best Coal Stocks.
While we acknowledge the potential of CNR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CNR and that has 100x upside potential, check out our report about this cheapest AI stock.
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