One factor driving coal stocks lower today is the Supreme Court's pending ruling on whether the EPA rules that resulted in utilities shuttering some coal-fired plans are legal, Barron's reports.
Additionally, coal miners are dealing with serious problems that include too much debt, declining coal prices, and preferences for other fuel sources, Barron's added.
Peabody Energy is a St. Louis-based energy company that operates by mining, preparing and selling thermal coal.
Other coal stocks declining today include Alpha Natural Resources (ANR), down by 4.61% to 34 cents, Westmoreland Coal (WLB) slipping by 3.28% to $21.06, and CONSOL Energy (CNX), lower by 1.36% to $22.47 this afternoon.
Separately, TheStreet Ratings team rates PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."