5 Best Coal Mining Stocks to Buy

In this article, we discuss the 5 best coal mining stocks to buy. If you want to read about some more coal mining stocks, go directly to 10 Best Coal Mining Stocks to Buy.

5. BHP Group (NYSE:BHP)

Number of Hedge Fund Holders: 24   

BHP Group (NYSE:BHP) is an Australian natural resources firm with interests in petroleum, copper, iron, and coal. Recent reports indicate that JSW, an Indian conglomerate, is reportedly considering the acquisition of coal mines in Australia owned by BHP Group. The potential deal, valued at around $1.5 to $2 billion, would allow JSW to secure a long-term coal supply for its steel mills. JSW’s interest in the Australian coal mines comes as part of its efforts to diversify its coal sourcing and reduce dependence on imports. The discussions between JSW and BHP Group are still at an early stage, per these reports. 

On April 28, investment advisory JPMorgan maintained a Neutral rating on BHP Group (NYSE:BHP) stock and lowered the price target to 2,320 GBP from 2,370 GBP. Analyst Lyndon Fagan issued the ratings update. 

At the end of the first quarter of 2023, 24 hedge funds in the database of Insider Monkey held stakes worth $122 million in BHP Group (NYSE:BHP), compared to 28 in the preceding quarter worth $1.4 billion.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in BHP Group (NYSE:BHP) with 863,916 shares worth more than $54 million. 

In its Q1 2022 investor letter, Harding Loevner, an asset management firm, highlighted a few stocks and BHP Group Ltd. (NYSE:BHP) was one of them. Here is what the fund said:

“Our purchase of Australian mining company BHP Group Ltd. (NYSE:BHP) is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”