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4 Reasons Why You Should Invest in Peabody Energy (BTU)
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Peabody Energy Corporation’s (BTU - Free Report) earnings estimates have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has also moved up 24.8% and 19.8%, respectively, to $3.62 and $2.54 per share, in the same time frame.
Peabody Energy, currently a Zacks Rank #1 (Strong Buy) stock, is a producer of coal, serving power and steel customers in more than 25 countries across six continents.
Let’s focus on the factors that make Peabody Energy a stock to bet on for obtaining greater returns.
Australian Operations: Peabody Energy’s presence in Australia provides a significant advantage and allows it to cater to the rising demand for coal from the Asia-Pacific countries. Thermal volumes from Australia are expected to improve from the current level, courtesy of the rising demand in the region.
Share Buyback: The company continues to increase shareholder value in the form of regular dividend payment and buyback of shares. In August 2017, the company initiated a share buyback program of $1 billion and repurchased shares worth $875 million from the authorization as of now. This initiative will have a positive impact on earnings of the company.
VGM Score: The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Earnings Surprise Trend: Peabody Energy delivered positive earnings surprise in two out of the past four quarters, with an average beat of 2.61%.
All the above factors contributed to the strong performance of the company and the trend will continue over the long run. Peabody Energy has returned 45.7% in the past 12 months, outperforming its industry’s rally of 22.4%.
Other Stocks to Consider
Other top-ranked stocks in the same industry include Alliance Resource Partners, L.P. (ARLP - Free Report) , CONSOL Coal Resources LP and CONSOL Energy Inc. (CEIX - Free Report) . Alliance Resource Partners and CONSOL Coal Resources sport a Zacks Rank #1, while CONSOL Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Resource Partners, CONSOL Coal Resources and CONSOL Energy surpassed the Zacks Consensus Estimate in the last reported quarter by 1.59%, 6.15% and 13.67%, respectively. All the three companies’ returns were better than the industry in past six months’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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4 Reasons Why You Should Invest in Peabody Energy (BTU)
Peabody Energy Corporation’s (BTU - Free Report) earnings estimates have been revised upward over the past 60 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has also moved up 24.8% and 19.8%, respectively, to $3.62 and $2.54 per share, in the same time frame.
Peabody Energy, currently a Zacks Rank #1 (Strong Buy) stock, is a producer of coal, serving power and steel customers in more than 25 countries across six continents.
Let’s focus on the factors that make Peabody Energy a stock to bet on for obtaining greater returns.
Australian Operations: Peabody Energy’s presence in Australia provides a significant advantage and allows it to cater to the rising demand for coal from the Asia-Pacific countries. Thermal volumes from Australia are expected to improve from the current level, courtesy of the rising demand in the region.
Share Buyback: The company continues to increase shareholder value in the form of regular dividend payment and buyback of shares. In August 2017, the company initiated a share buyback program of $1 billion and repurchased shares worth $875 million from the authorization as of now. This initiative will have a positive impact on earnings of the company.
VGM Score: The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Earnings Surprise Trend: Peabody Energy delivered positive earnings surprise in two out of the past four quarters, with an average beat of 2.61%.
All the above factors contributed to the strong performance of the company and the trend will continue over the long run. Peabody Energy has returned 45.7% in the past 12 months, outperforming its industry’s rally of 22.4%.
Other Stocks to Consider
Other top-ranked stocks in the same industry include Alliance Resource Partners, L.P. (ARLP - Free Report) , CONSOL Coal Resources LP and CONSOL Energy Inc. (CEIX - Free Report) . Alliance Resource Partners and CONSOL Coal Resources sport a Zacks Rank #1, while CONSOL Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alliance Resource Partners, CONSOL Coal Resources and CONSOL Energy surpassed the Zacks Consensus Estimate in the last reported quarter by 1.59%, 6.15% and 13.67%, respectively. All the three companies’ returns were better than the industry in past six months’ time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>