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Ramaco Resources (METC) Moves 6.1% Higher: Will This Strength Last?

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Ramaco Resources (METC - Free Report) shares soared 6.1% in the last trading session to close at $12.2. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 26.2% gain over the past four weeks.

Ramco Resources is well-positioned to benefit from its high-quality met coal production, primarily used in the steel making process. The company leverages its robust infrastructure and a stable, diversified customer base to maintain steady operations. Its ongoing cost-saving initiatives have helped partially mitigate the impact of decline in metallurgical coal prices in 2024.

Ramco’s favorable reserve geology supports low cash production costs per ton, giving it a competitive advantage. With high-quality metallurgical coal assets and the ability to serve both domestic and international markets, the company is strategically placed for growth. Its extensive experience in acquiring, developing, financing, and operating coal assets continues to enhance operational efficiency and long-term value.

This company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of -412.5%. Revenues are expected to be $129.29 million, down 16.8% 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 Ramaco Resources, 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 METC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ramaco Resources belongs to the Zacks Coal industry. Another stock from the same industry, Alliance Resource Partners, L.P. (ARLP - Free Report) , closed the last trading session 0.4% higher at $25.54. Over the past month, ARLP has returned -2.4%.

For Alliance Resource Partners, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.61. This represents a change of -22.8% from what the company reported a year ago. Alliance Resource Partners currently has a Zacks Rank of #5 (Strong Sell).


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