This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

9 Coal Stocks With Upside

2. Peabody Energy (BTU) owns majority interests in 28 coal mining operations located in the U.S. and Australia. Besides, the company also markets, brokers and trades coal. Peabody structures its operations into three mining segments -- Western U.S. and Midwestern U.S. Mining, Australian Mining, and Trading and Brokerage.

Consolidated revenue for the first quarter of 2011 was reported at $1.74 billion, increasing 15% from the year-ago period on sales of 61.2 million tons. EBITDA for the quarter rose 17% to $416.2 million. Net income during the quarter increased to $176.5 million or 65 cents per share, compared to $133.7 million or 50 cents per share in earlier year quarter. On June 7, 2011, the company paid a dividend of $0.085 per share.

Meanwhile, Peabody is seen benefitting from China's demand as the country is currently facing acute coal deficit leading to power outages. The company's CEO recently said that coal demand from India and China would escalate over the next 10 years. BTU has its interests in Indonesia and Australia and is on the lookout for assets in Africa. However, China seems to be a major opportunity and Peabody is eyeing joint ventures with four to five opportunities on hand. During 2011, China is expected to import about 70 million tons of coal, while India will import about 60 million.

For the second quarter of 2011, the company expects to benefit from increased volumes in Australia coupled with higher metallurgical and thermal coal prices. Peabody guides EBITDA in the range of $525 to $625 million and adjusted diluted earnings per share of 85 cents to $1.10. For full year 2011, the company targets EBITDA to range from $2.1 to $2.5 billion with adjusted diluted earnings per share of $3.5 to $4.5. Meanwhile, full year sales are seen between $245 and $265 million tons.

Of the 26 analysts covering the stock, 85% recommend a buy and 12% rate a hold. Data from Bloomberg has analysts predicting an average 12-month price target of $77.16, about 39.7% higher than the stock's recent price.
9 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WLT $0.03 0.00%
JRCC $0.00 0.00%
PVR $0.00 0.00%
ARLP $17.92 1.90%
CNX $7.59 -5.10%


Chart of I:DJI
DOW 17,787.97 -25.42 -0.14%
S&P 500 2,088.72 -0.15 -0.01%
NASDAQ 5,121.3950 +5.2520 0.10%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs