Billionaire David Einhorn’s 10 Stock Picks with Huge Upside Potential

4. Core Natural Resources, Inc. (NYSE:CNR)

Greenlight Capital’s Q4 Stake: $148.78 million

Analyst Upside as of April 30: 44.17%

Number of Hedge Fund Holders:

Core Natural Resources, Inc. (NYSE:CNR) is a leading producer and exporter of high-quality, low-cost coals, including metallurgical and high calorific value thermal coals. The Pennsylvania Mining Complex, Leer, Leer South, and West Elk mines are among the company’s top-performing assets. With an emphasis on seaborne markets, Core plays a vital role in addressing the world’s expanding demand for steel, infrastructure, and energy. The company was formed in January 2025 following the merger of long-standing industry titans CONSOL Energy and Arch Resources

Despite the fact that adjusted EBITDA for legacy assets fell short of estimates in the fourth quarter, Benchmark analysts retained a Buy rating on Core Natural Resources, Inc. (NYSE:CNR) with a $112 price target. Meanwhile, Jefferies launched coverage of Core Natural Resources with a Hold rating and a $93 price target, highlighting the company’s distinct asset portfolio and diverse coal exposure. The analysts emphasized the potential for fewer cyclical cash flows compared to other coal miners.

Black Bear Value Fund stated the following regarding Core Natural Resources, Inc. (NYSE:CNR) in its Q1 2025 investor letter:

“Core Natural Resources, Inc. (NYSE:CNR) is the result of the merger between Consol and Arch Resources. As a combined entity they are one of the leading producers of metallurgical coal (steel) and thermal coal (energy). The Company is heavily dependent on exports so retaliatory tariffs would be damaging. At the same time, there has been a reduction in global capacity so many countries may not have much choice, especially if they need higher quality coal.

Met coal demand is projected to climb for the next 25 years, driven by the economic development and urbanization in India and the rest of Southeast Asia. ~60% of the world’s population lives in Asia, where met coal demand is centered and where local sources are limited. Over the coming years demand will likely outstrip supply, leading to higher prices. There has been a severe lack of investment in met coal due to ESG concerns with investment peaking in 2014.

I will disclose my updated valuation thoughts at a later date as I find the investment extremely compelling and am hoping the Company can buy back ever cheaper stock. As a reminder this is a Company with a fortress balance sheet and is one of the cheapest producers in the market. While short-term pain hurts all Companies, they can be major long-term beneficiaries.”