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Alpha Metallurgical (AMR) Surges 10.1%: Is This an Indication of Further Gains?

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Alpha Metallurgical (AMR - Free Report) shares ended the last trading session 10.1% higher at $142.08. 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 13.8% gain over the past four weeks.

Alpha Metallurgical  is poised to benefit from improving metallurgical coal demand due to expected increase in long-term global steel production.  Its high quality coal assets and low- cost profile are an added advantage compared to its peers.

The company generates nearly 71% of its revenues from coal exports to its global market clients. Its transition towards lower-cost and higher-quality met coal operations ensures strong future metallurgical coal production with minimal growth in capital investment. Alpha Metallurgical will also benefit from its 2022 domestic realizations, which are expected to improve significantly as a result of successful completion of negotiations.

This company is expected to post quarterly earnings of $18.49 per share in its upcoming report, which represents a year-over-year change of +1138.8%. Revenues are expected to be $875.9 million, up 126.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Alpha Metallurgical, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AMR 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 >>>>

Alpha Metallurgical belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, HudBay Minerals (HBM - Free Report) , closed the last trading session 0.3% lower at $7.35. Over the past month, HBM has returned -1.1%.

For HudBay Minerals, the consensus EPS estimate for the upcoming report has changed -4.2% over the past month to $0.18. This represents a change of +400% from what the company reported a year ago. HudBay Minerals currently has a Zacks Rank of #3 (Hold).

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