Arch Coal (ARCH - Free Report) closed the most recent trading day at $94.27, moving +0.4% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.92%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the coal producer had gained 3.43% over the past month, outpacing the Basic Materials sector's loss of 3.4% and the S&P 500's loss of 2.56% in that time.
Wall Street will be looking for positivity from ARCH as it approaches its next earnings report date. This is expected to be February 12, 2019. On that day, ARCH is projected to report earnings of $3.09 per share, which would represent a year-over-year decline of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $555.57 million, down 0.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.05 per share and revenue of $2.35 billion. These totals would mark changes of +32.48% and +1.19%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for ARCH. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 36.13% higher. ARCH is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, ARCH currently has a Forward P/E ratio of 6.24. For comparison, its industry has an average Forward P/E of 10.95, which means ARCH is trading at a discount to the group.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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 ARCH in the coming trading sessions, be sure to utilize Zacks.com.