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Arch Resources (ARCH) Dips More Than Broader Markets: What You Should Know

·3 min read

Arch Resources (ARCH) closed at $145.58 in the latest trading session, marking a -1.15% move from the prior day. This move lagged the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 0.88%, while the tech-heavy Nasdaq lost 0.26%.

Coming into today, shares of the coal producer had gained 18.24% in the past month. In that same time, the Oils-Energy sector gained 2.79%, while the S&P 500 lost 3.4%.

Investors will be hoping for strength from Arch Resources as it approaches its next earnings release. On that day, Arch Resources is projected to report earnings of $13.75 per share, which would represent year-over-year growth of 179.47%. Meanwhile, our latest consensus estimate is calling for revenue of $830 million, up 39.63% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $59.32 per share and revenue of $3.71 billion. These totals would mark changes of +189.79% and +68.14%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Arch Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Arch Resources is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Arch Resources has a Forward P/E ratio of 2.48 right now. Its industry sports an average Forward P/E of 4.37, so we one might conclude that Arch Resources is trading at a discount comparatively.

The Coal industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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