Peabody Energy (BTU) Gains But Lags Market: What You Should Know
Peabody Energy (BTU) closed the most recent trading day at $27.89, moving +0.25% from the previous trading session. This change lagged the S&P 500's 1.46% gain on the day. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 6.63%.
Prior to today's trading, shares of the coal mining company had gained 5.3% over the past month. This has outpaced the Oils-Energy sector's gain of 1.9% and the S&P 500's gain of 4.75% in that time.
Peabody Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.82, down 25.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, up 7.23% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Peabody Energy. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.47% higher. Peabody Energy is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Peabody Energy currently has a Forward P/E ratio of 4.12. Its industry sports an average Forward P/E of 3.83, so we one might conclude that Peabody Energy is trading at a premium comparatively.
The Coal industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
To follow BTU in the coming trading sessions, be sure to utilize Zacks.com.
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