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Arch Resources (ARCH) Gains But Lags Market: What You Should Know

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In the latest trading session, Arch Resources (ARCH) closed at $145.74, marking a +1.31% move from the previous day. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.13%.

Coming into today, shares of the coal producer had lost 7.39% in the past month. In that same time, the Oils-Energy sector lost 2.37%, while the S&P 500 gained 4.44%.

Investors will be hoping for strength from Arch Resources as it approaches its next earnings release, which is expected to be July 28, 2022. In that report, analysts expect Arch Resources to post earnings of $21.86 per share. This would mark year-over-year growth of 1216.87%. Meanwhile, our latest consensus estimate is calling for revenue of $995 million, up 120.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $63.41 per share and revenue of $3.69 billion, which would represent changes of +209.77% and +67.07%, respectively, from the prior year.

Any recent changes to analyst estimates for Arch Resources should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.27% higher. Arch Resources is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note Arch Resources's current valuation metrics, including its Forward P/E ratio of 2.27. Its industry sports an average Forward P/E of 5.06, 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 15, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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