Arch Coal Inc. (NYSE: ARCH) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 1.92 points up or 2.48% higher on the previous close. So what do we make of this stock that is clearly one of the hottest on the market now? The ARCH stock is trading at $79.33 from a close of $77.41 on 10/11/19. The day’s price range saw the stock hit a low of $77.88, while the highest price level was $81.255 during the intraday trading.
Is the ARCH stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $81.25. Arch Coal Inc. (NYSE: ARCH) has a 52-week price range of between $68.63 and $101.92. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 203249, compared to its 3-months daily average volume of 262.65K. In comparison, the average volume for the last 50 days stands at 251,114.
What about the stock’s price forecasts? ARCH had 8 analysts who offered their 12-month price predictions for the Arch Coal Inc. shares. The group has given the stock a consensus price target of $97.25, with the lowest forecast being put at $80.00. The highest estimate by the 8 analysts is $120.00. The median price target estimate of $95.00 for the stock represents a 16.49% jump in value from the previous price of $79.33. Looking at the 52-week price ranges, the stock’s current price level is 15.59% from its 52-week high price and -22.16% down from its 52-week low in the same period.
Arch Coal Inc. shares have surged 3.39% over the past week, but its 1-month performance is in the red at -1.36%. Its performance in the current quarter is down -10.51%, while that figure shoots to -9.04% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has lost by -11.97%, with the year-to-date prices down by -4.41%.
The company has a market cap of 1.31 billion and a return on assets (ROA) of 18.10%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with ARCH’s at 49.40% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at 32.20%.
But what do Wall Street analysts tracking this stock recommend, given that it has 16.54 million shares outstanding? 8 analysts polled have a consensus recommendation rating of 4.20, indicating that ARCH is a Overweight stock at the moment. This mean rating was at 4.00 a month ago. Jefferies called it a Hold stock on August 06, 2019, while BMO Capital Markets rated it a Market Perform in its note released on November 30, 2018. Of the 8 analysts, 0 analysts rate the ARCH stock as Overweight, while 3 of them rated it as a Hold. 5 analysts rate Arch Coal Inc. as a Buy, while 0 suggested its Underweight. Only 0 analyst advised investors to sell.
Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Sep 2019) ranged from a low of $2.74 per share to $3.89 per share. The average estimate by the 7 analysts for the ARCH shares was $3.54 a share, while the company’s last-quarter results returned an EPS of $3.09. Looking at the current EPS trends, seven days ago, ARCH had its Sep 2019 estimates at $4.02 per share while the stock’s EPS was forecasted at the $4.54, a month ago. However, the company’s EPS growth for this quarter stands at -42.00%, while that growth rate for the next fiscal quarter is forecasted at -27.50%.
Let’s briefly check out revenue growth estimates for the company, which is put at -8.40% in the current quarter. However, the next quarter should see net revenue growth of over -12.90%, with analysts forecasting the company’s 12-month growth estimates at -5.80%. 6 analysts have forecast that Arch Coal Inc. will see its revenue growth net between $524.29 million and $642.2 million for the current quarter. The next quarter should see revenue returns of between $521 million and $605.5 million. The average revenue for the quarter is expected at $579.71 million, while for the next quarter, it jumps to $567.27 million. Sales growth for the year are estimated at -5.80%.