We have recently curated a roster of the “10 Best Coal Stocks To Purchase Now According to Short Sellers.” In this piece, we will delve into where Teck Resources Limited (NYSE:TECK) stands in comparison to other stocks in the coal sector.
Coal is prized for its energy content and is a staple in electricity generation, steel, and cement production worldwide, extracted through open-cast or underground mining techniques.
The thermal coal sector has seen a YTD decline of 0.47%, contrasting with the broader market’s 19.55% surge. This drop can be attributed to various challenges faced by the coal industry, including the diminishing use of coal in U.S. electricity generation as renewable energy becomes more prevalent. The sector is also pressured by coal unit retirements and stricter emission standards to achieve carbon-neutral electricity by 2030, causing a decline in coal’s share in U.S. power generation.
Despite these challenges, there are indications of recovery globally, with projected growth in U.S. coal exports and an anticipated uptick in global steel production that heavily relies on coal.
Teck Resources Limited (NYSE:TECK), headquartered in Vancouver, Canada, is involved in the exploration, development, and sale of natural resources, including coal. The company reported growth in revenue driven by strong sales in the coal segment and copper production in Q2 2024. To enhance its focus on energy transition metals, Teck recently restructured its operations.
While Teck ranks second on the list of top coal stocks for short sellers, considering TECK as an investment, we believe that certain AI stocks hold greater potential for higher returns within a shorter timeframe. If you are interested in an AI stock with promising prospects trading at less than five times its earnings, check out our report on the most affordable AI stock.
For further investment opportunities, explore our related articles on the best humanoid robot stocks to buy and insights from Jim Cramer on NVIDIA’s current status.
[Disclosure: None. This article was originally published on Insider Monkey.]