2. Arch Coal ( ACI), a coal producer, supplies coal to power plants, steel mills and industrial facilities. The company operates in three segments: Powder River Basin, the Western Bituminous region and the Central Appalachia region. Arch's mines and access to export facilities enable shipments to coal-fired power plants, industrial facilities, and steel mills located in the U.S. and worldwide. The stock gained 8.0% last week.

Three major coal companies including Arch Coal, Peabody Energy and Patriot Coal are expanding their metallurgical coal production by investing in new mines and acquisitions to meet demand from China and India. Last week, ACI was raised to buy from hold at Citigroup.

Of the 26 analysts covering the stock, 65% recommend a buy and 31% remaining rate a hold. On average, analysts estimate 32.8% upside to $38.00 in value from current levels.

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