Ramaco Resources (METC) Soars 28.8%: Is Further Upside Left in the Stock?
Ramaco Resources (METC) shares rallied 28.8% in the last trading session to close at $12.56. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.9% gain over the past four weeks.
Ramco Resourcesis poised to benefit from its strong infrastructure, improving met coal prices and stable met coal demand from diversified existing customer base. During the third quarter Ramco Resourcessuccessfully completed the expansion of the processing capacity at its Elk Creek preparation plant. The company expects by year end that it will have continuous operation at an annualized capacity thruput rate of 3.0 million tons
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 $0.16 per share in its upcoming report, which represents a year-over-year change of -76.1%. Revenues are expected to be $133.83 million, down 2.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ramaco Resources, the consensus EPS estimate for the quarter has been revised 1.6% 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ramaco Resources is a member of the Zacks Coal industry. One other stock in the same industry, Alliance Resource Partners, L.P. (ARLP), finished the last trading session 1.8% higher at $23.94. ARLP has returned 12.4% over the past month.
For Alliance Resource Partners, L.P. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.34. This represents a change of +7.2% from what the company reported a year ago. Alliance Resource Partners, L.P. currently has a Zacks Rank of #3 (Hold).
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Ramaco Resources, Inc. (METC) : Free Stock Analysis Report
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