Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Stocks to Buy as Coal Prices Continue to Surge

Stock Markets Oct 07, 2021 03:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. 3 Stocks to Buy as Coal Prices Continue to Surge

Despite environmental concerns, coal remains a vital source for energy generation. Coal prices recently surged to reach two-year highs, driven by renewed demand amid tight supply. Rising natural gas prices have primarily led to the increased demand for coal. Given this backdrop, coal stocks such as Alliance Resource Partners (NASDAQ:ARLP), CONSOL Energy (NYSE:CEIX), and Natural Resource Partners (NRP) could be solid additions to one’s portfolio now.Coal remains vital for various utilities despite climatic concerns and the push for cleaner energy. The United States Energy Information Administration projects electricity generation from coal to be 24% in both 2021 and 2022, up from 20% in 2020. Moreover, the global coal mining market is expected to increase at a CAGR of 2% between 2021 and 2025.

Natural gas prices are witnessing record rallies recently, prompting the utilities to switch to coal. The rising demand amid the prolonged supply cuts has led the U.S. coal prices to hit a two-year high. Coal from the central Appalachia region rose to $73.25 a ton last week, up 35% from the start of the year and the highest since May 2019.

The surging natural gas prices are expected to keep increasing the demand for coal. Thus, fundamentally strong coal stocks Alliance Resource Partners, L.P. (ARLP), CONSOL Energy Inc (NYSE:CNX). (CEIX), and Natural Resource Partners L.P. (NRP) should benefit from these industry tailwinds.

Continue reading on StockNews

3 Stocks to Buy as Coal Prices Continue to Surge
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email