Arch Resources, Inc. shares are trading close to a major resistance level. Given the share's technical chart pattern, investors could anticipate that this resistance zone will be broken which could lead to new upside potential.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
Weaknesses
● The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.
● The company is not the most generous with respect to shareholders' compensation.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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Arch Resources, Inc. is a coal producer and a producer of metallurgical coal. The Company sells substantially all of its coal to steel mills, power plants and industrial facilities. It is a producer of metallurgical products for the global steel industry, and the supplier of High-Vol A metallurgical coal globally. The Company has two distinct lines of business, metallurgical and thermal, and may include a number of mine complexes. It operates about seven active mines located in three of the major coal-producing regions of the United States. Leer and Leer South longwall mines anchor its large-scale, first quartile metallurgical franchise. The Leer and Leer South operations are complemented by the Beckley and Mountain Laurel continuous miner mines, which in aggregate provide it with a full suite of metallurgical products for sale in the global metallurgical market. The Company also operates thermal mines in the Powder River Basin and Colorado that produce thermal coal.