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Surging Earnings Estimates Signal Good News for Peabody Energy (BTU)

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Peabody Energy Corporation (BTU - Free Report) is a coal mining company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on BTU’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Peabody Energy could be a solid choice for investors.

Current Quarter Estimates for BTU

In the past 30 days, two estimates have gone higher for Peabody Energy while one has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from $1.11 a share 30 days ago, to $1.24 today, a move of 11.7%.

Current Year Estimates for BTU

Meanwhile, Peabody Energy’s current year figures are also looking quite promising, with one estimate moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $3.38 per share 30 days ago to $4 per share today, an increase of 18.3%.

Bottom Line

The stock has also started to move higher lately, adding 7.8% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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