Peabody Energy Corporation (BTU - Free Report) continues to benefit from its low-cost U.S. thermal coal mines. The company also benefits from its continued debt reduction initiatives and share repurchase program. Given its growth opportunities, BTU makes for a solid investment option in the coal industry.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for BTU’s 2023 earnings per share (EPS) has increased 5.4% to $4.87 in the past 30 days.
The Zacks Consensus Estimate for BTU’s 2024 EPS has increased 44.3% to $3.29 in the past 30 days.
The company delivered an average earnings surprise of 8.5% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Peabody Energy’s ROE is 35.81%, higher than the sector’s average of 25.84%. This indicates that the company has been utilizing its funds more constructively than its peers in the oils-energy sector.
Debt Position & Liquidity
Currently, Peabody Energy’s total debt to capital is 8.67%, much better than the industry’s average of 16.05%.
The current ratio at the end of the second quarter was 2.17. The ratio, being greater than one, indicates the company’s ability to meet future short-term liabilities without difficulties.
Share Repurchase Program
On Apr 17, 2023, BTU announced that its board of directors authorized a new share repurchase program authorizing repurchases of up to $1 billion of its common stock.
Through Jun 30, 2023, the company had repurchased 8.9 million shares of its common stock under the current repurchase program for $184.2 million, including $11.2 million of unsettled share repurchases and $0.2 million of paid commissions, leaving $816.0 million for share repurchase. Following Jun 30, 2023, BTU purchased an additional 3.1 million shares of its common stock for $67 million.
Price Performance
In the past month, BTU’s shares have rallied 8.9% compared with the industry’s average growth of 8.1%.
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Warrior Met Coal (HCC - Free Report) , Ramaco Resources (METC - Free Report) and Constellation Energy Corporation (CEG - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HCC’s 2023 EPS has increased 10.9% to $9.29 in the past 30 days. It delivered an average earnings surprise of 11.4% in the last four quarters.
The Zacks Consensus Estimate for METC’s 2023 EPS has increased 20.7% to $1.69 in the past 30 days. The Zacks Consensus Estimate for 2023 sales indicates a year-over-year improvement of 8.7%.
CEG’s long-term earnings growth rate is 23.3%. The Zacks Consensus Estimate for 2023 EPS indicates a year-over-year improvement of 1,216.3%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Peabody Energy Corporation (BTU - Free Report) continues to benefit from its low-cost U.S. thermal coal mines. The company also benefits from its continued debt reduction initiatives and share repurchase program. Given its growth opportunities, BTU makes for a solid investment option in the coal industry.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for BTU’s 2023 earnings per share (EPS) has increased 5.4% to $4.87 in the past 30 days.
The Zacks Consensus Estimate for BTU’s 2024 EPS has increased 44.3% to $3.29 in the past 30 days.
The company delivered an average earnings surprise of 8.5% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Peabody Energy’s ROE is 35.81%, higher than the sector’s average of 25.84%. This indicates that the company has been utilizing its funds more constructively than its peers in the oils-energy sector.
Debt Position & Liquidity
Currently, Peabody Energy’s total debt to capital is 8.67%, much better than the industry’s average of 16.05%.
The current ratio at the end of the second quarter was 2.17. The ratio, being greater than one, indicates the company’s ability to meet future short-term liabilities without difficulties.
Share Repurchase Program
On Apr 17, 2023, BTU announced that its board of directors authorized a new share repurchase program authorizing repurchases of up to $1 billion of its common stock.
Through Jun 30, 2023, the company had repurchased 8.9 million shares of its common stock under the current repurchase program for $184.2 million, including $11.2 million of unsettled share repurchases and $0.2 million of paid commissions, leaving $816.0 million for share repurchase. Following Jun 30, 2023, BTU purchased an additional 3.1 million shares of its common stock for $67 million.
Price Performance
In the past month, BTU’s shares have rallied 8.9% compared with the industry’s average growth of 8.1%.
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Warrior Met Coal (HCC - Free Report) , Ramaco Resources (METC - Free Report) and Constellation Energy Corporation (CEG - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HCC’s 2023 EPS has increased 10.9% to $9.29 in the past 30 days. It delivered an average earnings surprise of 11.4% in the last four quarters.
The Zacks Consensus Estimate for METC’s 2023 EPS has increased 20.7% to $1.69 in the past 30 days. The Zacks Consensus Estimate for 2023 sales indicates a year-over-year improvement of 8.7%.
CEG’s long-term earnings growth rate is 23.3%. The Zacks Consensus Estimate for 2023 EPS indicates a year-over-year improvement of 1,216.3%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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