3 Unstoppable Stocks Poised to Move Even Higher
The global energy crunch, the Russia-Ukraine war, and rising gas prices pushed coal prices to exceed $100 per ton earlier this month for the first time in 13 years. Furthermore, with several countries banning Russian coal imports, the supply crunch is pushing prices higher. Earlier this month, the European Union moved to ban coal imports from Russia. So, as demand for electricity and power generation continues to rise, the coal industry should continue witnessing an uptrend in the coming months.
In addition, according to EIA, U.S. coal production is projected to increase by 43 million short tons (MMst) in 2022, and coal exports are also estimated to multiply with ramped-up production. According to AmericaNewsHour, the global clean coal technology market is predicted to grow at a 3.2% CAGR through 2027.
Given this backdrop, coal stocks Alpha Metallurgical Resources, Inc. (AMR – Get Rating), CONSOL Energy Inc. (CEIX – Get Rating), and Peabody Energy Corporation (BTU – Get Rating) have witnessed a solid run lately, and their fundamental strength should help them keep climbing. So, we think these stocks could be solid bets now.
AMR in Bristol, Tenn., is a mining company that produces, processes, and sells met and thermal coal in Virginia and West Virginia. Currently, the company operates approximately 20 active mines and eight coal preparation and load-out facilities.
On March 7, 2022, Andy Eidson, AMR’s president, and chief financial officer, said, “We look forward to future quarters when our 2022 domestic realizations are expected to improve significantly as a result of the negotiations completed by our sales team late last year.”
AMR’s coal revenues came in at $826.56 million for the fourth quarter, ended Dec. 31, 2021, up 155.6% year-over-year. Its total revenues were $828.22 million, up 155.7% year-over-year. Furthermore, its net income was $257.44 million, compared to a $100.15 million loss in the previous period. Also, its EPS came in at $13.45, compared to a $5.47 loss per share in the year-ago period.
AMR’s revenue is expected to increase 50.2% to $3.39 billion in 2022. Its EPS is expected to grow 314.3% to $63.39 in 2022. It surpassed EPS estimates in three of the four trailing quarters. Over the past month, the stock has gained 31.2% to close yesterday’s trading session at $158.28.
AMR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
AMR has an A grade for Growth and Momentum and a B grade for Value and Quality. Within the A-rated Industrial – Services industry, it is ranked #8 of 89 stocks. Click here to see the additional POWR Ratings for Stability and Sentiment for AMR.
CEIX produces and exports bituminous coal in the United States. It operates through PAMC, CONSOL Marine Terminal, and Other segments. The Canonsburg, Pa., company possesses approximately 612.1 million tons of proven and probable coal reserves at PAMC.
On Feb. 8, 2022, CEIX’s management said…