Coal Stocks Could Surge With the Plunge in Natural Gas Inventories
The biggest beneficiary of plunging natural gas inventories might not be a company in the natural gas industry. The coal industry took a big hit due to the suddenly abundant and cheap energy source developed over the last decade. Coal stocks are arguably among the most hated stocks on the planet.
Stocks such as Peabody Energy (NYSE: BTU ) and Arch Coal (NYSE: ACI ) will benefit, however, the most from a switch back to coal as a fuel source for electricity production. Alpha Natural Resources (NYSE: ANR ) might provide the most upside, especially if investors see a global rebound that increases the demand for metallurgical coal used in steel production. In general, the sector has been crushed so much in the last couple of years that any snap-back in demand will raise all the stocks in the sector.
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