CEIX - Peabody Energy coal stocks soar with natural gas on demand optimism

Shares of coal miners explode higher alongside a rally in natural gas futures, sparked by forecasts for warmer than normal U.S. weather over the next two weeks, which traders apparently figure will lift demand for the power-plant fuel and strain supplies.Leading the way is Peabody Energy ([[BTU]] +28.9%), which has surged to its best level since February 2020; other big gainers include [[CEIX]] +8.3%, [[METC]] +8.2%, [[HNRG]] +8.1%, [[HCC]] +6.3%, [[ARLP]] +5.2%, [[ARCH]] +4.9%, [[CNX]] +4.4%.ETF: [[KOL]]Today's big move is "mostly due to stronger natural gas prices and the perception that BTU offers a compelling inflation hedge as an alternative source of low-cost energy," B. Riley analyst Lucas Pipes tells Bloomberg.Peabody is "a speculative lottery ticket with more than 3x potential upside in a strong coal price environment but also zero if coal prices weaken," Hidden Rock Capital writes in a bullish analysis published recently on Seeking Alpha.

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Peabody Energy, coal stocks soar with natural gas on demand optimism