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Peabody Energy (BTU) Gains As Market Dips: What You Should Know

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Peabody Energy (BTU - Free Report) closed at $25.21 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 0.41% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, added 0.07%.

Prior to today's trading, shares of the coal mining company had gained 28.67% over the past month. This has outpaced the Oils-Energy sector's gain of 6.47% and the S&P 500's loss of 5.13% in that time.

Wall Street will be looking for positivity from Peabody Energy as it approaches its next earnings report date. On that day, Peabody Energy is projected to report earnings of $1.95 per share, which would represent year-over-year growth of 425%. Our most recent consensus estimate is calling for quarterly revenue of $1.37 billion, up 49.66% from the year-ago period.

BTU's full-year Zacks Consensus Estimates are calling for earnings of $7.07 per share and revenue of $5.04 billion. These results would represent year-over-year changes of +135.67% and +41.65%, respectively.

Investors should also note any recent changes to analyst estimates for Peabody Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Peabody Energy is currently a Zacks Rank #3 (Hold).

In terms of valuation, Peabody Energy is currently trading at a Forward P/E ratio of 3.5. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 3.5.

The Coal industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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