This stock just spiked 20% after Trump’s Executive Order

The share price of American coal mining company Peabody Energy (NYSE: BTU) is breaking out as investors react to an Executive Order seeking to review the coal industry.

At market open on Wednesday, BTU soared 20% to trade at $13.60, extending the previous session’s gains, where the stock rallied by over 9%. 

This trajectory is moving against the broader market sentiment, which remains volatile due to the escalating trade war between the United States and China.

The catalyst for Peabody’s rally stems from President Donald Trump’s order invoking the Defense Production Act of 1950 to “support coal mining and ensure energy independence,” a move that would classify coal as critical to national security.

Trump’s order directed the Department of Justice (DOJ) to challenge state and local rules that hurt coal jobs, aiming to save the industry, support new coal technology, and keep coal-fired plants running, benefiting struggling producers like Peabody Energy.

Offsetting Peabody’s bearish run

The regulatory development will likely help offset the recent bearish sentiment that has weighed on BTU stock in recent weeks. 

For instance, Peabody Energy is encountering new challenges following an underground explosion at the Moranbah North mine in Queensland, Australia.

The incident, labeled a “small, contained ignition event” by Anglo American, has jeopardized Peabody’s $5.7 billion acquisition of the mine and other assets. The company is now “reviewing all options.” 

The mine remains shuttered amid ongoing investigations, compounding concerns after a prior fire at Anglo’s Grosvenor mine in 2024. These setbacks threaten the deal’s mid-2025 timeline and cast uncertainty over the future of the mine’s operations and workforce.

At the same time, Peabody reported total revenues of $4.2 billion for 2024, a slight decline from the nearly $5 billion generated in 2023. The coal giant also announced adjusted earnings of $177 million for the fourth quarter of 2024, down almost 50% from the $345 million reported during the same period a year earlier.

Meanwhile, a consensus of four Wall Street analysts over at TipRanks estimates that BTU stock will likely trade at an average price of $25.50 over the next 12 months, an upside of 107%.

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