In this piece, we will take a look at the five best coal stocks to buy now. For more stocks, head on over to 11 Best Coal Stocks To Buy Now.
5. New Hope Corporation Limited (OTCMKTS:NHPEF)
Price to Earnings Ratio (P/E) of November 17th, 2022: 4.90
New Hope Corporation Limited (OTCMKTS:NHPEF) is an Australian company that was set up in 1952 and is headquartered in Brisbane. The firm has coal mining projects all over Australia.
New Hope Corporation Limited (OTCMKTS:NHPEF) claims to export some of Australia’s cleanest coal, stating that its Trivoli brand produces low nitrous oxide and carbon dioxide emissions, alongside a lower carbon emissions content as well. The firm has two open cut mines in Australia, in Darling Downs and in Hunter Valley. Additionally, New Hope Corporation Limited (OTCMKTS:NHPEF)’s new mine in Queensland kicked off construction in November 2022, after being stuck in the regulatory process for fifteen long years.
4. NACCO Industries, Inc. (NYSE:NC)
Price to Earnings Ratio (P/E) of November 17th, 2022: 5.04
NACCO Industries, Inc. (NYSE:NC) is an American company that was set up in 1913 and is headquartered in Cleveland, Ohio. The firm operates coal mines for power generation and its mines are located in Texas, Mississippi, North Dakota, and New Mexico. It also leases its mineral rights to other firms.
NACCO Industries, Inc. (NYSE:NC)’s third fiscal quarter saw the firm report a 54% operating income increase for its minerals management segment, driven by the prices of oil and gas this year. The company’s coal contracts are long term in nature, which insulates it against underlying industry variability. For its third quarter, NACCO Industries, Inc. (NYSE:NC)’s coal mining revenues also grew annually since its price agreement with a power company changed to reflect higher prices.
Insider Monkey’s Q3 2022 survey of 920 hedge funds outlined that four had invested in NACCO Industries, Inc. (NYSE:NC). The firm has a 5.04 P/E ratio.
NACCO Industries, Inc. (NYSE:NC)’s largest shareholder is Jim Simons’ Renaissance Technologies which owns 223,917 shares that are worth $10 million.
[company-follow-email-id=789933][/company-follow-email]
3. CONSOL Energy Inc. (NYSE:CEIX)
Price to Earnings Ratio (P/E) of November 17th, 2022: 5.46
CONSOL Energy Inc. (NYSE:CEIX) is an American company that is one of the oldest of its kind since it was set up in 1860 and is currently headquartered in Canonsburg, Pennsylvania. The firm primarily mines bituminous coal, and it sells it to power and metallurgical companies, among others.
CONSOL Energy Inc. (NYSE:CEIX)’s coal is primarily used by power generation companies, with figures for the calendar year 2021 showing that 63% of all of its coal is used for this purpose. This is crucial, since the demand for power generation coal is higher due to global energy shortages. Additionally, CONSOL Energy Inc. (NYSE:CEIX) has locked in 21.8 million tons of orders for 2023, and 8.8 million tons for 2024, providing the firm with stable demand even with a potential recession on the horizon.
CONSOL Energy Inc. (NYSE:CEIX) pays a $1.05 dividend for a 6.95% yield. Its P/E ratio is 5.46 and 31 out of the 920 hedge funds polled by Insider Monkey during this year’s September quarter had invested in the firm.
CONSOL Energy Inc. (NYSE:CEIX)’s largest investor is David Einhorn’s Greenlight Capital which owns 1.7 million shares that are worth $110 million.
[company-follow-email-id=1710366][/company-follow-email]
2. China Shenhua Energy Company Limited (OTCMKTS:CSUAY)
Price to Earnings Ratio (P/E) of November 17th, 2022: 5.74
China Shenhua Energy Company Limited (OTCMKTS:CSUAY) is a Chinese company that is headquartered in Beijing. The firm has some of the largest coal reserves in the world since its recoverable coal reserves sit at a whopping 14.15 billion tones.
China Shenhua Energy Company Limited (OTCMKTS:CSUAY) raked in 355 billion Yuan in revenue in 2021, as a recovery from the coronavirus pandemic drove the firm’s revenues to grow by 44% annually. This also translated into a 44% growth in its bottom line profits, which stood at 2.5 billion Yuan. During the same time period, China Shenhua Energy Company Limited (OTCMKTS:CSUAY) also sold an absolutely massive 310 billion tons of coal.
China Shenhua Energy Company Limited (OTCMKTS:CSUAY)’s P/E ratio is 5.74x.
1. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Price to Earnings Ratio (P/E) of November 17th, 2022: 7.08
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is an American diversified natural resource company that is based in Tulsa, Oklahoma. The firm has mining operations in Kentucky, Maryland, West Virginia, and other American states.
Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s third quarter saw the firm’s coal sales grow by 8.1% annually and 2.8% sequentially to sit at 9.2 million tons. Additionally, the firm has been slowly but steadily improving its balance sheet position, as its debt to assets ratio (which measures the firm’s leverage) dropped from 0.28 in 2020 to 0.21 in 2021 and further slid down to 0.18 by the end of Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s third fiscal quarter in 2022.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) has a 7.08 P/E ratio and six out of the 920 hedge funds polled by Insider Monkey for this year’s third quarter had bought a stake in the company.
Alliance Resource Partners, L.P. (NASDAQ:ARLP)’s largest shareholder is Adam Peterson’s Magnolia Capital Fund which owns 3 million shares that are worth $68 million.
[company-follow-email-id=1086600][/company-follow-email]
Disclosure: None. You can also take a look at 10 Best Auto Stocks To Buy Now and 10 Best Safe Dividend Stocks for Retirement Portfolios.
