Peabody Energy (BTU) shares soared 9.2% in the last trading session to close at $11.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20.1% loss over the past four weeks.
Peabody Energy, is likely to gain from President Trump's recent executive order, aimed at revitalizing the coal industry. The new order is seen as a positive boost for the company, indicating a potential increase in coal demand and usage.
Peabody Energy is expected to acquire Anglo American's steelmaking coal operations, strengthening its presence in the metallurgical coal market. The World Steel Association projects a rise in steel production volumes in 2025. This acquisition would benefit Peabody as demand for metallurgical coal is expected to grow.
This coal mining company is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $991 million, up 0.8% 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 Peabody Energy, the consensus EPS estimate for the quarter has been revised 25.3% 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 BTU 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 >>>>
Peabody Energy belongs to the Zacks Coal industry. Another stock from the same industry, Warrior Met Coal (HCC), closed the last trading session 6.3% higher at $43.44. Over the past month, HCC has returned -13.1%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
