In this article, we discuss the 5 best coal stocks to invest in. If you wish to read our detailed analysis of the coal industry and the latest market situation, go directly to 10 Best Coal Stocks To Invest In.
5. Ramaco Resources, Inc. (NASDAQ:METC)
Number of Hedge Fund Holders: 22
Ramaco Resources, Inc. (NASDAQ:METC) is up next on our list of the best coal stocks to invest in. It deals in the mining, production and sale of metallurgical coal in the states of Virginia, West Virginia and Pennsylvania. The firm’s mineral property portfolio consists of the Elk Creek, Berwind, RAM Mine, and Knox Creek mines. It supplies coal to US-based blast furnace steel mills and coke plants, as well as metallurgical coal consumers around the globe. As of June 7, Ramaco Resources, Inc. (NASDAQ:METC) shares have climbed 194.18% in the last 12 months, making it one of the best-positioned firms in the coal industry.
Jefferies analyst Christopher LaFemina on June 7 upgraded Ramaco Resources, Inc. (NASDAQ:METC) to ‘Buy’ from ‘Hold’ with a price target of $25, up from $16. He thinks that the mining sector is currently undervalued and poised to outperform as China undergoes a recovery. LaFemina raised his coal price and iron ore forecasts, and upgraded a handful of firms in the group.
22 hedge funds owned stakes worth $38.7 million in Ramaco Resources, Inc. (NASDAQ:METC) at the end of the first quarter. This shows growing investor confidence in the company over the previous quarter where 14 hedge funds owned $13.2 million worth of positions. The biggest shareholder of Ramaco Resources, Inc. (NASDAQ:METC) in the first quarter was Millennium Management, which increased its stake by more than 500% to consist of roughly 524,000 shares worth $8.27 million.
Here is what Horos Asset Management had to say about the prospects of Ramaco Resources, Inc. (NASDAQ:METC) in its Q3 2021 investor letter:
“As mentioned above, we also initiated a position in Ramaco. The decision to invest in this U.S. metallurgical coal producer stems from our positive outlook for this commodity, given its supply and demand dynamics—which we have already explained in the past because of our Warrior investment. The company is in a phase of expansion of its production capacity, which could lead it to produce more than 4 million tons per year, compared to the current c. 2.5 million. It concentrates part of its production on customers in the United States, where its mines are located. Finally, unlike most listed coal mining companies, the Board and management team control more than 75% of the shares, so they are fully aligned with the rest of the shareholders. Although the upside is now much lower, following the rally that Ramaco had since investing at the beginning of the quarter, we believe that it is still attractive in the current market context.”