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CNX Coal (CNXC) at 52-Week High on Solid Growth Initiatives


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CNX Coal Resources LP (CNXC - Snapshot Report) scaled a new 52-week high of $18.00 during yesterday’s trading session before closing a tad lower at $17.48. The stock has delivered a one-year return of about 41%.

Over the past 52 weeks, CNX Coal’s unit price has ranged from a low of $5.98 to a high of $18.00. Average volume of units traded over the last three months is approximately 77,389.

What's Driving CNX Coal?

CNX Coal’s shares have been on the rise ever since the company declared its second-quarter 2016 results on Jul 25, 2016. The partnership surpassed expectations on both counts, backed mainly by higher coal shipments. Productivity in the quarter improved 17% in terms of tons per employee-hour.

CNX COAL RESRCS Price and Consensus

Going ahead, the partnership stands to benefit from its acquisition of a 5% undivided interest in the Pennsylvania Mining Complex (PAMC) and infrastructure from CONSOL Energy Inc. (CNX - Analyst Report) for $88.8 million. This acquisition increased CNX Coal’s stake in the PAMC to 25%.

Besides that, the transaction appears well timed with the coal markets on the brink of a recovery. It is expected to improve the partnership’s financials by increasing balance sheet flexibility and boosting cash flows.

Moreover, the partnership has been witnessing solid estimate revisions over the past month, which suggests that analysts are increasingly taking a bullish stance on CNX Coal’s prospects both in the short and long term.

Zacks Rank & Key Picks

CNX Coal currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the Oil Energy sector include Hallador Energy Company (HNRG - Snapshot Report) and Basic Energy Services, Inc. (BAS - Snapshot Report) .

Hallador Energy, a Zacks Rank #1 stock (Strong Buy), has witnessed a 168.2% increase in its earnings estimates for 2016 over the last 60 days.

Basic Energy recorded an average positive earnings surprise of 1.50% in the trailing four quarters. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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