Ramaco Resources (METC Quick QuoteMETC - Free Report) shares ended the last trading session 14.1% higher at $14.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 27.6% gain over the past four weeks.

Ramco Resources is poised to gain from improving metallurgical coal demand as gradual recovery in the global steel industry will result in fresh demand.  The company will enjoy the benefit of its strong infrastructure and stable demand from diversified existing customer base.

The company is an advantageous position due to its reserve geology, which results in low production cash costs per ton. High quality metallurgical coal production and average realized sales prices of $93/ton in 1H21 has resulted in strong margins for the company.

This company is expected to post quarterly earnings of $0.07 per share in its upcoming report, which represents a year-over-year change of +163.6%. Revenues are expected to be $82.85 million, up 110% 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 Ramaco Resources, the consensus EPS estimate for the quarter has been revised 31.5% 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 METC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>