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Alpha Metallurgical (AMR) Gains As Market Dips: What You Should Know

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Alpha Metallurgical (AMR - Free Report) closed the most recent trading day at $161.98, moving +1.94% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.

Heading into today, shares of the company had lost 2.38% over the past month, lagging the Basic Materials sector's gain of 4.47% and the S&P 500's gain of 6.51% in that time.

Investors will be hoping for strength from Alpha Metallurgical as it approaches its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $858.5 million, down 19.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $46.09 per share and revenue of $3.25 billion, which would represent changes of -42.02% and -20.82%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Alpha Metallurgical. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Alpha Metallurgical is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Alpha Metallurgical currently has a Forward P/E ratio of 3.45. Its industry sports an average Forward P/E of 10.49, so we one might conclude that Alpha Metallurgical is trading at a discount comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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.

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


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