Best Coal Stocks to Buy Now – Cloud Peak Energy (CLD)
For coal stocks, Wyoming’s Powder River Basin features some of the best coal reserves on the planet. Aside from the sheer amount of coal, it has some of the lowest sulfur-producing reserves. That makes it ideal for utilities trying to skirt new EPA rules about emissions.
It also happens to be the primary stomping ground for Cloud Peak Energy’s (CLD) — one of the top coal stocks out there.
With royalty agreements with the Powder River Basin’s Crow Tribe, CLD has unprecedented access to the region’s vast reserves at cheaper costs than its competitor’s holdings. CLD stock could get a boost from future exports of PBR coal. The pending Gateway Pacific Terminal — which will be used to send PBR coal directly to Asia — happens to sit in CLD’s back yard.
With that sea-port still in the planning/construction stages, CLD has been cutting costs, conserving cash and idling excess mine supply. That puts coal stocks like CLD in a prime position to benefit when coal prices rebound.
CLD stock can currently be had for P/E of 16.