Earnings estimates for Warrior Met Coal Inc. (HCC - Free Report) have been revised upward over the past 30 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved 3% and 0.2% north to $8.23 and $5.23, respectively.
The company is a producer and exporter of premium metallurgical coal. It operates primarily in the U.S. state of Alabama. Warrior Met Coal is based in Brookwood town of Tuscaloosa County.
Let’s focus on the factors that make Warrior Met Coal an attractive stock to be retained for reaping greater returns.
Price Appreciation: In the past 12 months, shares of Warrior Met Coal have inched up 0.7% against the industry’s decline of 3.1%. The stock sports a Zacks Rank #1 (Strong Buy).
VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a VGM Score of A or B coupled with a top Zacks Rank offer the best investment bets.
Earnings Estimates & Surprise Record: The company’s current-year earnings are pegged at $8.23, reflecting nearly 4.3% year-over-year growth. Its bottom line surpassed the consensus mark in two of the last four reported quarters, the average beat being 0.62%.
Strong Capex Plan: The company continues to invest systematically in growth-oriented projects while maintaining its property, plant and equipment at the same time. It spent $79.6 million during the first nine months of 2018 compared with $62.7 million in the same period last year. The company plans to pump in more resources and expects the full-year capital expenditure to range between $100 million and $120 million.
Increased Production & Realization: Year to date, the company has produced a total of 5.3 million short tons of coal, registering a rise of 12.8% compared with 4.7 million short tons of coal produced in the comparable period last year. Also, the average net selling price per short ton has increased to $175.13 compared with $173.20 last year.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Oil & Gas sector are Canadian Solar Inc. (CSIQ - Free Report) , Clearway Energy, Inc. (CWEN - Free Report) and Eni S.p.A. (E - Free Report) , each flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Canadian Solar pulled off average positive surprise of 49.66% in the trailing four reported quarters. The Zacks Consensus Estimate for 2018 EPS moved 41.6% up over the past 60 days to $2.45.
Clearway Energy delivered average four-quarter beat of 178.04%. The consensus mark for 2018 EPS has been revised 8.2% upward over the past 60 days to $1.45.
Eni came up with average four-quarter earnings surprise of 16.72%. The consensus estimate for 2018 EPS has been raised 9% over the past 60 days to $3.16.
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