The coal market in the United States has been in a severe bust cycle since the beginning of 2011, with most major companies' share prices down over 50% in that time frame. Many factors have been weighing on the sector, including record low natural gas prices, weakening demand from domestic utilities, and slow downs around the world in steel production.
With all of these struggles, Arch Coal (NASDAQOTH:ACIIQ) has been able to position itself nicely for a rebound, both here and abroad. As the No. 2 coal producer in the U.S., Arch Coal slowly has been able to reduce its cost per ton in all operating regions. It has also signed export deals that will help move its coal offshore to places where demand is expected to pick up. Arch Coal has production capacity waiting in the wings that can be pulled online with limited capital spending to handle global demand and the hoped-for resurgence in the U.S.
To see how this company has been accomplishing this, check out the discussion about this company's current situation and its outlook for the future in video below.
Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.