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Zacks Investment Ideas feature highlights: Consol Energy

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For Immediate Release

Chicago, IL – August 15, 2022 – Today, Zacks Investment Ideas feature highlights Consol Energy (CEIX - Free Report) .

Powerful "Buy" Signal Has This Energy Play at All-Time Highs

Investing with the overall trend is an important requirement for profitable stock investing. We've all heard the phrase "the trend is your friend," but investing in the direction of the trend can truly help reduce timing risk for investors.

Limiting purchases to stocks that are in a price uptrend can make all the difference between winning and losing portfolios, particularly in years such as this one. It often pays to allow price to dictate buying and selling decisions, rather than trying to predict which direction a stock will take in the future.

Employing a trend-following system can also help investors gravitate toward the best opportunities. The stock market is dynamic, whereby leading stocks and industry groups are constantly changing. This year, we've witnessed the energy sector dominate returns as these companies have seen their earnings bolstered by higher energy prices. While the sector has come down off the peak, one energy company has gone on to buck the trend and print new all-time highs.

Consol Energy's Powerful Force

It is far more profitable to own stocks of companies that produce commodities than the commodities they produce. In the following example, we'll illustrate a return comparison of a producer versus its underlying commodity, which in this case is coal.

Consol Energy is a producer and exporter of high-BTU bituminous thermal and crossover metallurgical coal. It owns and operates productive longwall mining operations primarily in the Northern Appalachian Basin. Coal prices in the Northern Appalachian region have doubled this year – no doubt a phenomenal return.

Consol Energy's return year-to-date? 202% -- more than double that of coal prices. We can see in this example that an investment in a stock that produces the commodity generated a much greater return than an investment in the underlying commodity itself.

And as we zoom out a bit, the stock has propelled to new all-time highs. Even as the energy sector has pulled back over the last month, CEIX has continued its bullish run.

Consol Energy has exceeded earnings estimates in three of the past four quarters. The coal producer most recently delivered Q2 EPS last week of $3.42/share, an 86.89% beat over the $1.83/share estimate. CEIX has posted a trailing four-quarter average earnings surprise of 15.75%, aiding the stock's return over the past year.

Analysts have raised their full-year EPS outlook by +0.74% in the past 60 days. The Zacks Consensus Estimate now stands at $9.55/share, a staggering 363.59% growth rate relative to last year.

Make sure to put CEIX on your watchlist if you haven't already done so.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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