Peabody Energy (BTU) Outpaces Stock Market Gains: What You Should Know
Peabody Energy (BTU) closed the most recent trading day at $28.27, moving +1.51% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.29%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq lost 4.94%.
Heading into today, shares of the coal mining company had gained 0.72% over the past month, outpacing the Oils-Energy sector's loss of 0.08% and lagging the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Peabody Energy as it approaches its next earnings release, which is expected to be February 14, 2023. In that report, analysts expect Peabody Energy to post earnings of $1.82 per share. This would mark a year-over-year decline of 25.1%. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 7.23% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Peabody Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 37.22% higher within the past month. Peabody Energy is currently a Zacks Rank #2 (Buy).
In terms of valuation, Peabody Energy is currently trading at a Forward P/E ratio of 4.01. For comparison, its industry has an average Forward P/E of 3.55, which means Peabody Energy is trading at a premium to the group.
The Coal industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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