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Three Winning Coal Names For $120 Oil (WLT, BTU, JRCC)

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Coal names will no doubt attract more investors as the dollar weakens and the price of oil surges. Below are the three best value coal plays by earnings.

Walter Energy - Walter Energy (NYSE: WLT) is by far the best value play in coal, with an EPS of $8 per share. Walter moved up in lock step with oil prices on Monday as the price of oil shot back above $100. With a P/E ratio of 16.8, Walter Energy won't look expensive until it rises 20% to $160 per share.

Peabody Energy - Peabody Energy (NYSE: BTU) is the second-best coal name on the market, with an EPS of $3.01 per share and a P/E of over 21. Though the P/E ratio makes Peabody look expensive, its 200-day chart could suggest a 10% move to the upside for its stock price.

James River Coal - James River (NASDAQ: JRCC) is a coal name that has both great earnings and an attractive price. With an EPS of 2.82, James River has a staggeringly low P/E of 8.41. This stock could easily add 25% to its stock price before it would even begin to look pricey.

 

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