Ramaco Resources (METC) Moves 17.8% Higher: Will This Strength Last?
Ramaco Resources (METC) shares ended the last trading session 17.8% higher at $17.68. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.3% gain over the past four weeks.
Ramco Resources is poised to benefit from its strong infrastructure, improving met coal prices and stable met coal demand from diversified existing customer base. The acquisition of 100% interests of Ramaco Coal LLC, will provide immediate benefit to the company of an accretive reduction in royalty payment.
The company is an advantageous position due to its reserve geology, which results in low production cash costs per ton. It has high quality metallurgical coal production assets and is well-positioned to transact into both domestic and export markets. The company also has a long history of acquiring, developing, financing, building, and operating coal assets, which continues to boost its operations.
This company is expected to post quarterly earnings of $1.63 per share in its upcoming report, which represents a year-over-year change of +608.7%. Revenues are expected to be $203.36 million, up 167.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Ramaco Resources, the consensus EPS estimate for the quarter has been revised 10.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on METC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ramaco Resources belongs to the Zacks Coal industry. Another stock from the same industry, Alliance Resource Partners, L.P. (ARLP), closed the last trading session 1.7% higher at $20.88. Over the past month, ARLP has returned 16.7%.
Alliance Resource Partners, L.P.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.85. Compared to the company's year-ago EPS, this represents a change of +150%. Alliance Resource Partners, L.P. currently boasts a Zacks Rank of #2 (Buy).
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