NEW YORK (TheStreet) --Shares of Peabody Energy Corp. (BTU) are down by 10.56% to $2.24 in early afternoon trading on Tuesday, as some coal mining stocks reverse yesterday's gains that came from the Supreme Court EPA decision.
On Monday, Peabody and other coal miners jumped after the Supreme Court ruled that the Environmental Protection Agency must consider the financial impact to a company when stepping in to impose regulations over public health concerns.
However, analysts believe it is unlikely that the court's decision will offer any substantial help to the coal industry, The Wall Street Journal reports.
Power companies that had spent decades burning coal have already spent billions of dollars in order to switch to cleaner fuel options, The Journal noted, and most are reluctant to make the switch back.
Other coal miners retreating from yesterday's advance include Alpha Natural Resources (ANR), slumping by 7.59% to 32 cents, Arch Coal (ACI), lower by 2.55% to 40 cents and Walter Energy (WLT), down by 9.42% to 21 cents 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 several weaknesses, 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."