Back to top

Image: Bigstock

5 Reasons to Add CONSOL Coal Resources to Your Portfolio

Read MoreHide Full Article

Earnings estimates for CONSOL Coal Resources LP have been revised upward over the past 30 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 earnings has moved 1.4% north to $2.13 during the period.

CONSOL Coal Resources is a growth-oriented master limited partnership. It produces and sells high-Btu thermal coal in the Northern Appalachian Basin and the Eastern United States.

Let’s focus on the factors that make CONSOL Coal Resources a profitable pick at the moment.

Price Movement

In the past 12 months, CONSOL Coal Resources’ units have gained 5.5% versus the industry’s decline of 21.8%.



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 three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a solid Zacks Rank offer the best investment options.

Earnings Surprise Trend

CONSOL Coal Resources delivered a positive surprise in three of the last four reported quarters, the average beat being 23.56%.

Coal Production

CONSOL Coal Resources’ production was 5,188 tons at the end of the first nine months of 2018, up from 4,966 tons in the year-ago period. The firm’s coal production increased 222 tons to meet excess demand. The U.S. Energy Information Administration (EIA) report forecasts 2018 coal exports from the United States to touch 112.7 million short tons (MMst), up 16.2% from the 2017-level.

The Trump administration forecasts a 4.5-5.8% increase in coal production for generating electricity by 2025 under its Clean Power Plan proposal. Also, the partnership stands to benefit from recent improvements in the metallurgical coal markets. Increase in metallurgical coal prices will favorably impact the firm’s coal royalty revenues.

Strong Asset Base

The firm’s assets include 25% undivided ownership interest along with management and control rights in CONSOL Energy's Pennsylvania mining complex. The complex has three underground mines, namely Bailey, Enlow Fork and Harvey alongside a related infrastructure. With five longwall mining systems and 17 continuous mining sections, the Pennsylvania mining complex boasts an annual production capacity of 28.5 million tons.

Zacks Rank & Other Key Picks

CONSOL Coal Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other top-ranked stocks in the same sector include SunCoke Energy, Inc. (SXC - Free Report) , Warrior Met Coal Inc. (HCC - Free Report) and Canadian Solar Inc. (CSIQ - Free Report) , each with a Zacks Rank of 1.

SunCoke Energy pulled off an earnings surprise of 302.65% in the last four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been revised 48.3% upward to 43 cents over the past 90 days.

Warrior Met Coal delivered a positive surprise of 0.62% in the trailing four reported quarters. The Zacks Consensus Estimate for 2018 earnings moved 6.1% north to $8.23 over the past 90 days.

Canadian Solar came up with a beat of 49.66% in the previous four reported quarters. The Zacks Consensus Estimate for 2018 earnings has been raised 53.2% to $2.65 over the past 90 days.

3 Medical Stocks to Buy Now

The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.

So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.

See them today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canadian Solar Inc. (CSIQ) - free report >>

Warrior Met Coal (HCC) - free report >>

SunCoke Energy, Inc. (SXC) - free report >>

Published in