The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham . This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ARCH COAL INC ( ARCH ) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arch Coal, Inc. is a coal producer. The Company is engaged in the production of thermal and metallurgical coal from surface and underground mines located throughout the United States, for sale to utility, industrial and steel producers both in the United States and around the world. Its segments include the Powder River Basin ( PRB ) segment containing the Company's primary thermal operations in Wyoming; the Metallurgical ( MET ) segment containing the Company's metallurgical operations in West Virginia, Kentucky, and Virginia, and the Other Thermal segment containing the Company's supplementary thermal operations in Colorado, Illinois, and the Coal Mac thermal operation in West Virginia. The Company operates mining complexes in West Virginia, Kentucky, Virginia, Illinois, Wyoming and Colorado. It sells all of its coal to power plants, steel mills and industrial facilities. As of December 31, 2016, it operated 12 mines located in each of the coal-producing regions of the United States.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
|SECTOR: ||PASS |
|SALES: ||PASS |
|CURRENT RATIO: ||PASS |
|LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: ||PASS |
|LONG-TERM EPS GROWTH: ||FAIL |
|P/E RATIO: ||PASS |
|PRICE/BOOK RATIO: ||PASS |
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Since its inception, Validea's strategy based on Benjamin Graham has returned 448.89% vs. 176.21% for the S&P 500. For more details on this strategy, click here
About Benjamin Graham : The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here