Up 80% in 2022, are Coronado shares heading for the ASX 200?

Happy man mining and wearing a helmet in a dark mine underground.

Happy man mining and wearing a helmet in a dark mine underground.

The Coronado Global Resources Inc (ASX: CRN) share price has been an outstanding ASX performer in 2022 so far. Coronado shares are currently up 0.22% so far today, putting this coal miner at a price of $2.315 share. It pushes Coronado shares up an eye-watering 78% or so in 2022 thus far. Not a bad return for four months.

Coronado’s stellar share price performance over the year to date has resulted in the company’s market capitalisation swelling to almost $3.9 billion. However, Coronado still isn’t part of the ASX’s flagship index, the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is designed to reflect the 200 or so largest shares by market cap on the Australian share market. Coronado’s market cap is far larger than many of the ASX 200’s smaller components. But the company still hasn’t made the cut.

However, if reporting in The Australian this week is to be believed, that could be about to change. According to the report, broker Wilsons is tipping five new entrants to the ASX 200 when the index is due for its quarterly rebalance next month.

Coronado share price set for an ASX 200 promotion

And Coronado is one. Since AMP Ltd (ASX: AMP) is no longer considering spinning off its Collimate assets, Wilsons reckons Coronado is the most likely beneficiary. Here’s some of what Wilsons had to say on the matter:

Coronado is the least liquid of the probable entrants, which should be price-supportive for Coronado on the day of the rebalance… Its chances of inclusion improved upon AMP’s announcement, which will likely drive short-term trading support in the coming days.

In addition to Coronado, Wilsons is predicting that Core Lithium Ltd (ASX: CXO)Johns Lyng Group Ltd (ASX: JLG)Brainchip Holdings Ltd (ASX: BRN), and Coronado’s fellow coal share New Cope Corporation Limited (ASX: NHC) are likely candidates for ASX 200 inclusion.

These shares are likely to take the place of companies like Codan Limited (ASX: CDA)Polynovo Ltd (ASX: PNV)Appen Ltd (ASX: APX), and Platinum Asset Management Ltd (ASX: PTM). These are the unlucky shares that Wilsons has identified as the most likely to get kicked out of the index next month.

We’ll find out what the ‘new ASX 200’ looks like next month on 3 June. So it will be interesting to see if Coronado makes the cut, as this ASX broker is predicting.

The post Up 80% in 2022, are Coronado shares heading for the ASX 200? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Coronado right now?

Before you consider Coronado, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coronado wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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