5 Best Coal Mining Stocks To Buy Today

4. CONSOL Energy Inc. (NYSE:CEIX)

Number of Hedge Fund Holders: 32

CONSOL Energy Inc. (NYSE:CEIX) mines and sells bituminous coal domestically and internationally. One of its segments, Pennsylvania Mining Complex, is responsible for extracting, processing, and promoting bituminous coal to power generators, industrial, and metallurgical end-users. CONSOL Energy Inc. (NYSE:CEIX)’s CONSOL Marine Terminal segment offers coal export terminal services using the Port of Baltimore. The company is headquartered in Canonsburg, Pennsylvania. On February 7, CONSOL Energy Inc. (NYSE:CEIX) reported a Q4 GAAP EPS of $5.39 and a revenue of $637.15 million, up 32.6% on a year-over-year basis. It is one of the best coal stocks to monitor. 

On January 17, Lucas Pipes, an analyst at B. Riley, decreased the firm’s target price on CONSOL Energy Inc. (NYSE:CEIX) from $85 to $84. However, the analyst maintained a Buy rating on the shares following an update to his metallurgical coal price estimates. Pipes prefers stocks that have a “conservative” balance sheet and “strong” capital return policies to ensure long-term flexibility and options.

According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on CONSOL Energy Inc. (NYSE:CEIX), compared to 31 funds in the prior quarter. David Einhorn’s Greenlight Capital is the biggest stakeholder of the company, with 1.8 million shares worth $117.8 million. 

Greenlight Capital made the following comment about CONSOL Energy Inc. (NYSE:CEIX) in its Q4 2022 investor letter:

“As CONSOL Energy Inc. (NYSE:CEIX) rode a surge in coal prices, the shares soared from $22.71 to $65.00 and the company paid $2.05 per share in dividends. In 2022, part of the higher coal prices were absorbed by hedges and forward contracts at what turned out to be below-market prices. Even so, we believe the company ended the year with no net debt. From here, with the below market contracts mostly behind, we expect the higher prices to translate directly into much higher earnings, with most of the free cash flow to be returned to shareholders. Much of the pricing in 2023 and some of the pricing in 2024 is locked in. As a result, we believe that the company will generate free cash flow over the next two years equal to its current market capitalization. While thermal coal will probably never be cool to own, we believe the returns for owning CEIX should continue to be hot.”