Back to top

Bear of the Day

We downgrade our recommendation on Walter Energy Inc. (WLT) to Underperform from Neutral as the current depressed trend in thermal coal prices and increasing cost from the company's U.K. and Canadian operations take a toll on the company's profitability. We believe these depressed trends will persist in the coming quarters.

The obligation to fulfill environmental regulation is also expected to limit Walter's cost-cutting program. Also, the company's narrow capex outlook for 2012 is expected to shake investor confidence. The failure to add reserves and fluctuations in input prices are other negatives that could offset Walter's growth.

The trailing 12-month EV/EBITDA multiple is lower than the industry average. Our $28.00 target price is based on 2.7x trailing 12-month cash flow per share.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%