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Trader: Buy this coal stock down 20% in one day

A coal mound stands at the Appalachian Electric Power coal-fired Big Sandy Power Plant in Catlettsburg, Kentucky, in 2014. The plant shuttered its coal production last year and converted to natural gas.
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A coal mound stands at the Appalachian Electric Power coal-fired Big Sandy Power Plant in Catlettsburg, Kentucky, in 2014. The plant shuttered its coal production last year and converted to natural gas.

CNBC "'Halftime Report" trader Joe Terranova bought shares of a coal stock that fell 20 percent Tuesday, after the company reported dismal earnings.

Terranova, who is chief investment strategist at Virtus Investment Partners, chose Consol Energy (CNX), which also produces oil and natural gas, as one of his top picks for CNBC Pro's model portfolio competition.

The purchase of CNX represents the last transaction allotted for the year, and implies the investor believes the stock could take him to the finish line.

Here's why the investor believes this coal name could move higher from here: