Peabody Energy Corporation (BTU) Stock Analysis
Range Bound setup
Energy · Thermal Coal
Sell if holding. Engine safety override at $26.52: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 15%; Below-average business quality; Below long-term trend.
Peabody Energy is a leading coal producer with 16 active mining operations in the US and Australia across Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, and Other US Thermal segments. Revenue comes from selling thermal coal (majority by volume) to electric... Read more
Sell if holding. Engine safety override at $26.52: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 15%; Below-average business quality; Below long-term trend. Chart setup: RSI 40 mid-range, Bollinger mid-band. Score 4.7/10, moderate confidence.
Passes 6/8 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on earnings proximity 4d<=7d. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCommoditythermal coal10-K Item 1A: 'Thermal coal represented the majority of the Company’s coal sales by volume during 2025 and 2024'
- LOWCommoditymetallurgical coal27%10-K Item 1A: 'The Company also produces metallurgical coal for the global steel industry, which accounted for approximately 27% and 25% of its revenue in 2025 and 2024'
- LOWCustomerfive largest customers25%10-K Item 1A: '25% of the Company’s revenue was derived from coal supply agreements with its five largest customers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
2 floor-breakers·1 ceiling hit
Revenue shrinking — -9.0% YoY. Growth thesis broken unless recovery story develops.static
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $26.52: Quality below floor (2.4 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10 and A.R:R 3.5:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 15%; Below-average business quality; Below long-term trend. Chart setup: RSI 40 mid-range, Bollinger mid-band. Prior stop was $24.64. Score 4.7/10, moderate confidence.
Take-profit target: $34.00 (+28.3% upside). Prior stop was $24.64. Stop-loss: $24.64.
Concentration risk — Commodity: thermal coal; Quality below floor (2.4 < 4.0).
Peabody Energy Corporation trades at a P/E of N/A (forward 6.6). TrendMatrix value score: 9.1/10. Verdict: Sell.
11 analysts cover BTU with a consensus score of 4.0/5. Average price target: $39.
What does Peabody Energy Corporation do?Peabody Energy is a leading coal producer with 16 active mining operations in the US and Australia across Seaborne...
Peabody Energy is a leading coal producer with 16 active mining operations in the US and Australia across Seaborne Thermal, Seaborne Metallurgical, Powder River Basin, and Other US Thermal segments. Revenue comes from selling thermal coal (majority by volume) to electric utilities and metallurgical coal (~27% of 2025 revenue) to the global steel industry.