3 Reasons to Buy Peabody Energy

By Taylor Muckerman – Mar 13, 2013 at 11:00AM

OTC: BTU

Peabody Energy Corporation

There are several reasons why Peabody Energy could be the top coal company to add to your portfolio. A detailed look at three can be found below.

The entire coal market has been beaten down over the last year due to punishingly low natural gas prices in the domestic market. While the overall market dynamics might have lead investors to shy away from coal producers, there are certainly several reasons why Peabody Energy (BTU) could be a positive investment choice:

The rapidly growing export market for coal
Its high-margin Australian operation's proximity to China and India
Its market-leading position in the best basins in the U.S.

For more detail on these three key points, check out Motley Fool energy and materials analyst Taylor Muckerman's video:

Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.