October 5, 2018 - Earnings estimates for CONSOL Coal Resources LP have been revised upward in the past 60 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has moved up 9.5% and 6.6% to $2.30 and $2.10, respectively, in the said period.
CONSOL Coal Resources is a growth-oriented master limited partnership, produces and sells high-Btu thermal coal in the Northern Appalachian Basin and Eastern United States.
Let’s focus on the factors that make CONSOL Coal a profitable pick at the moment.
Earnings Surprise Trend & Estimates Movement
CONSOL Coal delivered a positive earnings surprise in three out of the past four quarters, with an average beat of 2.72%.
Its 2018 earnings estimates moved up 57.53% year over year to $2.30 per share.
Coal Production & Exports
Coal production was 3,596 tons at the end of the first half of 2018, up from 3,430 tons in the year-ago period. The Partnership’s coal production increased 166 tons to meet the excess demand for the same.
The partnership enables investors’ access to participate in growing global thermal and met coal demand with a differentiated marketing strategy and control through its ownership of CONSOL Marine Terminal.
Strong Asset Base
The partnership’s assets include 25% undivided ownership interest, along with management and control rights in CONSOL Energy's Pennsylvania mining complex. The Pennsylvania mining complex has three underground mines -- Bailey, Enlow Fork and Harvey -- and related infrastructure. With five longwall mining systems and 17 continuous mining sections, the Pennsylvania mining complex has an annual production capacity of 28.5 million tons.
The stock and has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all the three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a solid Zacks Rank offer the best investment options.
In the past 12 months, CONSOL Coal Resources’ units have gained 26.8% compared with the industry’s rally of 14.9%.
Zacks Rank & Other Key Picks
CONSOL Coal Resources currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the same space include Contura Energy Inc., Arch Coal Inc. and Natural Resources Partners LP. While Contura Energy sports a Zacks Rank #1, Arch Coal and Natural Resources Partners both carry a Zacks Rank #2 (Buy).
Earnings estimates of Contura Energy, Arch Coal and Natural Resources Partners have moved up 18.9%, 8.3% and 9.8%, respectively, over the past 90 days. All the stocks have outperformed the industry in a year’s time.