Strength Seen in Warrior Met Coal (HCC): Can Its 5.2% Jump Turn into More Strength?
Warrior Met Coal (HCC) shares rallied 5.2% in the last trading session to close at $37.77. 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 0.8% gain over the past four weeks.
Warrior Met Coal will benefit from end of the labor strike and resulting incremental production volume as eligible employees return to work. The incremental production and sales volume is nearly 500,000 short tons, primarily occurring in the second half of 2023.
Warrior Met Coal with its high-quality and low production assets remains well positioned in the global met coal market. Strong production volumes and its investment in the world-class Blue Creek reserves are likely to boost stockholders value.
This company is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of -66.1%. Revenues are expected to be $352.43 million, down 43.6% 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 Warrior Met Coal, the consensus EPS estimate for the quarter has been revised 5.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HCC 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 >>>>
Warrior Met Coal is a member of the Zacks Coal industry. One other stock in the same industry, SunCoke Energy (SXC), finished the last trading session 3.2% higher at $8.02. SXC has returned 2.4% over the past month.
SunCoke's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of -9.5%. SunCoke currently boasts a Zacks Rank of #3 (Hold).
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