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Peabody Energy (BTU) Gains But Lags Market: What You Should Know
In the latest trading session, Peabody Energy (BTU - Free Report) closed at $25.60, marking a +1.31% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 5.21%.
Prior to today's trading, shares of the coal mining company had lost 8.28% over the past month. This has lagged the Oils-Energy sector's loss of 2.11% and the S&P 500's gain of 2.28% in that time.
Peabody Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Peabody Energy to post earnings of $1.68 per share. This would mark year-over-year growth of 11.26%. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, up 87.17% from the prior-year quarter.
BTU's full-year Zacks Consensus Estimates are calling for earnings of $6.83 per share and revenue of $5.4 billion. These results would represent year-over-year changes of -23.17% and +8.49%, respectively.
Any recent changes to analyst estimates for Peabody Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Peabody Energy currently has a Zacks Rank of #3 (Hold).
Investors should also note Peabody Energy's current valuation metrics, including its Forward P/E ratio of 3.7. Its industry sports an average Forward P/E of 3.4, so we one might conclude that Peabody Energy is trading at a premium comparatively.
The Coal industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BTU in the coming trading sessions, be sure to utilize Zacks.com.