The entire coal market has been beaten down over the last year due to punishingly low natural gas prices in the domestic market. While the overall market dynamics might have lead investors to shy away from coal producers, there are certainly several reasons why Peabody Energy could be a positive investment choice:
The rapidly growing export market for coal
Its high-margin Australian operation's proximity to China and India
Its market-leading position in the best basins in the U.S.
There's more to know about Peabody Energy than just these three strengths:
The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.
For more detail on these three key points, check out Motley Fool energy and materials analyst Taylor Muckerman's video:
The article 3 Reasons to Buy Peabody Energy originally appeared on Fool.com.
Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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