ARNC - Arconic Corporation

NYSE - NYSE Delayed price. Currency in USD
14.51
+0.44 (+3.13%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous close14.07
Open14.05
Bid0.00 x 800
Ask15.46 x 1300
Day's range14.02 - 14.56
52-week range5.80 - 34.27
Volume726,484
Avg. volume2,161,282
Market cap1.582B
Beta (5Y monthly)N/A
PE ratio (TTM)6.50
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • The New Coal Miner Pitch: Don’t Mention Coal
    Bloomberg

    The New Coal Miner Pitch: Don’t Mention Coal

    (Bloomberg Opinion) -- Gray? Try “steel-colored.” Angular? You must mean “steel-inspired.” I’m referring, of course, to the new logo of the rechristened Arch Resources Inc.The old logo, with its stylized fragment of St Louis’ Gateway Arch, was fine — apart from the fact that it had the word “coal” in it. Arch Coal, the company’s old name, was a mite too connected with a certain fuel that is not only in terminal decline in the U.S. but also rather unpopular with the ESG crowd.When Arch Coal was formed in 1997, America’s power stations were burning 900 million tons a year, generating more than half the country’s electricity, and climbing. Today, thermal coal accounts for less than a fifth of the mix:Remarkably, in announcing its name change this week, Arch pulled a Voldemort with the word “coal”: It doesn’t appear anywhere in the main body of the press release(3). This is doubly impressive when you consider Arch Resources will in fact continue to mine prodigious quantities of ... well, you know. Thingy.Only Arch is now focused on a different class of thingy. Metallurgical coal is thermal coal’s more prosperous sibling, a vital ingredient for making steel; hence Arch’s steely new logo. Except Arch refers to these black rocks dug out from the ground not as metallurgical coal but as metallurgical products.Corporate rebranding tends to offer a rich seam of material, but Arch’s new name is actually a logical progression in a logical strategy.Ever since the miner emerged from chapter 11 in 2016, its approach has been one long tacit acknowledgement that the U.S. thermal coal industry is in a downward spiral. That business has essentially been run for cash, with capex running at just 70% of depreciation, and the company’s Powder River Basin assets are about to be subsumed into a joint venture with Peabody Energy Corp. The more profitable metallurgical business, meanwhile, is expanding, with a major new project in West Virginia underway. Most importantly, though, for every dollar Arch has invested back into the business, it’s spent about $1.60 on stock buybacks, taking in 40% of the shares(1) . This is how you head into the sunset.So the new name and Terminator-esque logo aren’t just some branding consultant’s WFH project. It’s the latest step in Arch’s quest to carve out a new life after death. For example, see this from the announcement:We expect steel to play an essential role in the revitalization of the global economy as it recovers from the disruption of the COVID-19 pandemic, and in the construction of a new economy supported by mass transit systems, wind turbines and electric vehicles.See? No mention of coal, but a cameo by wind turbines, no less (ah, the irony). Mad Men’s Don Draper once pitched Bethlehem Steel on advertising itself as producing the building blocks of America’s great cities. In real life, Arch would like you to know it mines the building blocks that go into making those building blocks.On one level, that’s par for the course. Any commodity producer would like you to associate their otherwise standard product with something more exceptional and valuable; similar thinking underlay Arconic Corp.’s split from aluminum smelter Alcoa Corp. Metallurgical coal may be higher-margin, but it remains a commodity, with all the volatility that entails; the stock has halved so far this year(2). Far better to focus minds on something more stable, like a T-bar.In this case, though, there’s a bigger drama playing out, and the wind turbine is the key character. While Arch’s announcement lacked “coal,” it provided my annual quota of “environmental, social and governance” mentions in the space of a few minutes. Arch is still running its thermal coal mines and likely will for as long as they spit out cash. But competition from cheap shale gas and renewable energy has made thermal coal a tough sell to investors already. Now climate change is making it altogether taboo — regardless of how efficient the miner — as ESG considerations gain traction.The ongoing  rebranding of Big Oil as Big Energy reflects similar dynamics. As the function of energy markets shifts from simply producing ever more tons or barrels or whatnot to optimizing supply, demand and emissions, so the expectations of the capital markets shift, too.  The multiple that makes a stock price is ultimately just some narrative about the future expressed as a number (for an extreme example, see Tesla Inc.). It isn’t just that Arch’s old story no longer convinces; it’s increasingly unacceptable and thereby a burden on, rather than a boost to, value. Becoming truly steel-inspired requires being a touch coal-amnesic.(1) You'll find a couple of instances further down in the safe-harbor language, but who reads that? Of course we all read that.(2) All figures are aggregated for the period 2017 through the first quarter of 2020.(3) Amove of just $25 a ton in the price of metallurgical coal is enough to swing Arch’sEbitda by $175 million, as per Arch Resources' investor presentation on May 15, 2020. Data are pro-forma for the start up of the Leer South project in West Virginia.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Why Arconic Stock Jumped 16.5% at the Open on May 20
    Motley Fool

    Why Arconic Stock Jumped 16.5% at the Open on May 20

    Specialty parts manufacturer Arconic saw a big gain at the open as at least one research shop thinks a business upturn is in the cards.

  • Does Arconic's (NYSE:ARNC) P/E Ratio Signal A Buying Opportunity?
    Simply Wall St.

    Does Arconic's (NYSE:ARNC) P/E Ratio Signal A Buying Opportunity?

    Market forces rained on the parade of Arconic Inc. (NYSE:ARNC) shareholders today, when the analysts downgraded their...

  • A Sliding Share Price Has Us Looking At Arconic Inc.'s (NYSE:ARNC) P/E Ratio
    Simply Wall St.

    A Sliding Share Price Has Us Looking At Arconic Inc.'s (NYSE:ARNC) P/E Ratio

    Unfortunately for some shareholders, the Arconic (NYSE:ARNC) share price has dived 49% in the last thirty days. The...

  • When Does Market Timing Actually Work? - February 04, 2020
    Zacks

    When Does Market Timing Actually Work? - February 04, 2020

    In the long-run, does consistent market timing really matter to be a successful investor?

  • New Strong Sell Stocks for January 29th
    Zacks

    New Strong Sell Stocks for January 29th

    Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today

  • Arconic (ARNC) Trails Earnings and Sales Estimates in Q4
    Zacks

    Arconic (ARNC) Trails Earnings and Sales Estimates in Q4

    Weakness in commercial transportation, automotive as well as building and construction markets dent Arconic's (ARNC) Q4 results.

  • Arconic's (ARNC) Q4 Earnings and Sales Miss Estimates
    Zacks

    Arconic's (ARNC) Q4 Earnings and Sales Miss Estimates

    Arconic's (ARNC) adjusted earnings for Q4 came in at 53 cents per share, which missed the Zacks Consensus Estimate of 54 cents.

  • Should We Be Cautious About Arconic Inc.'s (NYSE:ARNC) ROE Of 8.0%?
    Simply Wall St.

    Should We Be Cautious About Arconic Inc.'s (NYSE:ARNC) ROE Of 8.0%?

    While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...

  • Arconic (ARNC) Warms Up to Q4 Earnings: What's in Store?
    Zacks

    Arconic (ARNC) Warms Up to Q4 Earnings: What's in Store?

    Our proven model doesn't conclusively predict an earnings beat for Arconic (ARNC) this time around.

  • Arconic's (ARNC) Shares Rise 17% in 6 Months: Here's Why
    Zacks

    Arconic's (ARNC) Shares Rise 17% in 6 Months: Here's Why

    Upbeat outlook and healthy growth prospects contribute to the rally in Arconic's (ARNC) shares.

  • When Does Market Timing Actually Work? - January 07, 2020
    Zacks

    When Does Market Timing Actually Work? - January 07, 2020

    Have you ever dreamed of being that one in a million investor who has the talent to perfectly time the markets?

  • Arconic's (ARNC) Shares Rally 60% in a Year: Here's Why
    Zacks

    Arconic's (ARNC) Shares Rally 60% in a Year: Here's Why

    Arconic (ARNC) gains from strength across its key end-markets and actions to improve its operations.

  • All You Need to Know About Arconic (ARNC) Rating Upgrade to Buy
    Zacks

    All You Need to Know About Arconic (ARNC) Rating Upgrade to Buy

    Arconic (ARNC) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank 2 (Buy).

  • Why You Should Hold Onto Eastman Chemical (EMN) Stock for Now
    Zacks

    Why You Should Hold Onto Eastman Chemical (EMN) Stock for Now

    Eastman Chemical (EMN) gains from its cost control actions amid a difficult demand environment.

  • Why You Should Keep PPG Industries (PPG) in Your Portfolio
    Zacks

    Why You Should Keep PPG Industries (PPG) in Your Portfolio

    PPG Industries (PPG) benefits from cost management actions and acquisitions amid a challenging demand environment.

  • Here's Why You Should Invest in Arconic (ARNC) Stock Now
    Zacks

    Here's Why You Should Invest in Arconic (ARNC) Stock Now

    Arconic (ARNC) to benefit from strong demand and focus on cost-reduction.

  • Stocks About to Complete a Strong 2019
    Zacks

    Stocks About to Complete a Strong 2019

    Stocks About to Complete a Strong 2019

  • What Makes Reliance Steel (RS) Stock a Solid Choice Right Now
    Zacks

    What Makes Reliance Steel (RS) Stock a Solid Choice Right Now

    Let's see what makes Reliance Steel (RS) an attractive investment option at the moment.

  • 5 Incredible Value Stocks to Buy for 2020
    Zacks

    5 Incredible Value Stocks to Buy for 2020

    Despite the strong market rally in 2019, there are few stocks that are trading cheap and hence are good investment options for value investors in 2020.

  • Arconic (ARNC) Shares Surge 87% YTD: What's Behind the Rally?
    Zacks

    Arconic (ARNC) Shares Surge 87% YTD: What's Behind the Rally?

    Upbeat outlook and strong growth prospects have contributed to the run-up in Arconic's (ARNC) shares.

  • Here's Why You Should Add Air Products (APD) to Your Portfolio
    Zacks

    Here's Why You Should Add Air Products (APD) to Your Portfolio

    Let's see what makes Air Products (APD) a compelling investment option at the moment.

  • The Keys to Successfully Timing the Markets - December 16, 2019
    Zacks

    The Keys to Successfully Timing the Markets - December 16, 2019

    Is the ability to time the markets more of a data-driven science or a 'gut - feeling' art?

  • Arconic (ARNC) Is Up 0.19% in One Week: What You Should Know
    Zacks

    Arconic (ARNC) Is Up 0.19% in One Week: What You Should Know

    Does Arconic (ARNC) have what it takes to be a top stock pick for momentum investors? Let's find out.