Peabody Energy (BTU) Jumps 10% as Coal Boom Talks Fuel Rally

We recently published Monstrous Gains: 10 Stocks Leaving Wall Street in the Dust. Peabody Energy Corp. (NYSE:BTU) is one of the best performers on Friday.

Shares of Peabody Energy rallied for a third straight day on Friday, jumping 9.94 percent to end at $19.13 apiece as investors cheered its highly optimistic outlook for the coal industry over the next few years.

In a statement earlier this week, Peabody Energy Corp. (NYSE:BTU) said that the surging demand for electricity in the US has the potential to bolster coal consumption by as much as 57 percent.

In a study released in July, the US Energy Information Administration said that it expects electricity generation to increase to 17 percent this year from 16 percent in 2024; and consumption to grow by 6 percent this year but decrease by 6 percent in 2026 amid planned power plant retirements and increasing renewable capacity coming online.

Peabody Energy Corp. (NYSE:BTU), one of the largest private coal companies globally, is expected to benefit from the energy boom as demand for both thermal and metallurgical coal remains resilient.

In the second quarter of the year, Peabody Energy Corp. (NYSE:BTU) swung to a net loss attributable to shareholders of $27.6 million from a $199.4 million net income in the same period last year. Revenues dropped by 14 percent to $890.1 million from $1.04 billion year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.