Why Peabody Energy Stock Is Soaring Today and Could Go Even Higher
Coal stock Peabody Energy (NYSE: BTU) is on fire today, up a whopping 14% as of 12:22 p.m. EDT. It's a stunning turnaround after the stock's 17% drop in the five trading days through June 20. There's a lot brewing here.
Coal prices have shot up in recent months and breached $150 a metric ton this week to hit record highs. That's music to Peabody Energy's ears, simply because its profitability depends directly on coal prices.
Several factors are driving coal prices higher. To start, a massive heat wave in China (the world's largest coal consumer) has sent demand for electricity to unprecedented levels, forcing the nation to jack up its coal production to keep coal-fired power plants running. As of July 15, average daily coal consumption in China crossed 2.2 million metric tons to hit a historical high, according to a report from Reuters.
Source Fool.com
