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Peabody Energy (BTU) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Peabody Energy (BTU - Free Report) closed at $27.98, marking a -0.46% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.
Coming into today, shares of the coal mining company had lost 4.52% in the past month. In that same time, the Oils-Energy sector gained 5.68%, while the S&P 500 gained 4.06%.
Peabody Energy will be looking to display strength as it nears its next earnings release. On that day, Peabody Energy is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 25.1%. Our most recent consensus estimate is calling for quarterly revenue of $1.36 billion, up 7.23% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Peabody Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 33.47% higher. Peabody Energy is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Peabody Energy has a Forward P/E ratio of 4.16 right now. This represents a premium compared to its industry's average Forward P/E of 3.8.
The Coal industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.