Best Coal Stocks to Buy Now – Peabody Energy (BTU)
When it comes to coal stocks, Peabody Energy (BTU) is definitely king of them all.
BTU stock is appealing because Peabody is one of the largest producers of the mineral. The BTU empire spans 28 different mines across several nations — including the U.S., Australia, Indonesia and China. That global reach has allowed Peabody Energy to profit even when things turned sour for coal stocks here at home. BTU has a much easier time tapping into markets in electricity-hungry Asia than many other domestic coal stocks.
Not to mention that prices for coal are better overseas as well.
For the first nine months of the year, Peabody Energy was able to sell Australian-produced coal at around $112 per ton. Meanwhile, it only cost BTU around $80 per ton to produce. By contrast U.S. mined coal only netted BTU around $18 per ton at a cost of $13.
Meanwhile, Peabody Energy continues to cut costs via prudent CAPEX spending and lowering its debt. BTU stock currently features an industry low debt-to-equity ratio of 130%.
All in all, its global reach and low costs of production have made BTU stock one of the only profitable coal stocks around. Based on 2016 earnings estimates, BTU stock currently can be had for dirt cheap P/E of just 7.