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

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Peabody Energy (BTU - Free Report) closed the most recent trading day at $26.21, moving -0.34% from the previous trading session. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.19%.

Coming into today, shares of the coal mining company had gained 6.35% in the past month. In that same time, the Oils-Energy sector lost 4.37%, while the S&P 500 lost 6.15%.

Peabody Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.95, up 425% from the prior-year quarter. 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 $6.91 per share and revenue of $5.05 billion. These results would represent year-over-year changes of +130.33% and +41.93%, respectively.

Investors might also notice recent changes to analyst estimates for Peabody Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 2.26% lower within the past month. Peabody Energy is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Peabody Energy currently has a Forward P/E ratio of 3.81. For comparison, its industry has an average Forward P/E of 3.81, which means Peabody Energy is trading at a no noticeable deviation to the group.

The Coal industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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