Global coal demand is projected to rise 1.2% in 2026 to 8.94 billion tons, driven by Middle East supply disruptions and El Niño weather patterns that increase energy demand. Despite long-term headwinds from renewable energy adoption and declining U.S. coal usage, the coal industry is positioned in the top 24% of Zacks-ranked industries. Three stocks are highlighted as investment opportunities in this sector.

SunCoke Energy reported Q1 2026 consolidated adjusted EBITDA of $56.5 million, down from $59.8 million year-over-year, primarily due to severe winter weather, a Middletown turbine failure, and the Haverhill 1 shutdown, partially offset by the Phoenix acquisition. The company posted a net loss of $0.05 per share and maintained full-year guidance of $230-250 million consolidated adjusted EBITDA. Management expects operational improvements in Q2-Q4 as weather normalizes and the Middletown turbine resumes operations in late Q2. The company announced its 27th consecutive quarterly dividend of $0.12 per share and ended the quarter with $262 million in liquidity.

Three materials stocks - Sherwin-Williams, SunCoke Energy, and James Hardie Industries - are showing signs of being overbought based on their RSI (Relative Strength Index) levels, indicating they may be at risk of a potential decline in the near future.

Arch Resources, Alliance Resource Partners and SunCoke Energy are part of the Zacks Industry Outlook article.

Despite the expected drop in U.S. coal production volumes, Zacks Coal industry players like Arch Resources (ARCH), Alliance Resource Partners (ARLP) and SunCoke Energy (SXC) are likely to remain competitive with improving coal export volumes.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

SunCoke (SXC) delivered earnings and revenue surprises of 4.55% and 33.33%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?

Peabody Energy (BTU) unveils some details of its upcoming first-quarter earnings, with its earnings getting impacted by lower realized prices, increased costs and extended outage.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Here is how SunCoke Energy (SXC) and Ultrapar Participacoes S.A. (UGP) have performed compared to their sector so far this year.

Despite the expected drop in U.S. coal production volumes, coal producers like Peabody Energy (BTU), Warrior Met Coal (HCC), SunCoke Energy (SXC) and Ramaco Resources (METC) are likely to remain competitive with improving export volumes.