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Arch Resources (ARCH) Gains As Market Dips: What You Should Know

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Arch Resources (ARCH - Free Report) closed the most recent trading day at $170.12, moving +1.27% from the previous trading session. This move outpaced the S&P 500's daily loss of 2.91%. Meanwhile, the Dow lost 2.73%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Coming into today, shares of the coal producer had gained 8.1% in the past month. In that same time, the Oils-Energy sector gained 16.13%, while the S&P 500 gained 0.84%.

Arch Resources will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $18.32, up 1003.61% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $903 million, up 100.49% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $62.61 per share and revenue of $3.69 billion, which would represent changes of +205.86% and +67.21%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Arch Resources. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.9% lower within the past month. Arch Resources is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Arch Resources currently has a Forward P/E ratio of 2.68. Its industry sports an average Forward P/E of 4.41, so we one might conclude that Arch Resources is trading at a discount comparatively.

The Coal industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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