Company Performance - Alpha Metallurgical (AMR) has a year-to-date performance of approximately 6.6%, outperforming the average loss of 7.1% in the Basic Materials sector [2][3] - The Zacks Consensus Estimate for AMR's full-year earnings has increased by 48.2% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [2] - Alpha Metallurgical is part of the Mining - Miscellaneous industry, which has seen an average loss of 9.2% this year, further highlighting AMR's relative strength [3] Industry Comparison - The Basic Materials sector, which includes 236 companies, currently ranks 15 in the Zacks Sector Rank [1] - Steel Dynamics (STLD), another stock in the Basic Materials sector, has returned 5.5% year-to-date, also outperforming the sector average [2] - The Steel - Producers industry, to which Steel Dynamics belongs, is ranked 183 and has moved -1.7% this year, indicating weaker performance compared to the Mining - Miscellaneous industry [3]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Group 1 - Alpha Metallurgical (AMR) is currently ranked 15 in the Zacks Sector Rank for Basic Materials, which includes 236 companies [1] - The Zacks Rank for Alpha Metallurgical is 1 (Strong Buy), indicating strong potential for outperforming the market in the next one to three months [1] - Over the past 90 days, the Zacks Consensus Estimate for AMR's full-year earnings has increased by 28.1%, reflecting improved analyst sentiment [2] Group 2 - Year-to-date, Alpha Metallurgical has returned approximately 20%, significantly outperforming the Basic Materials group average return of 5.2% [2] - In comparison, another Basic Materials stock, Ur Energy (URG), has returned 12.3% year-to-date and has a Zacks Rank of 2 (Buy) [2] - Alpha Metallurgical belongs to the Mining - Miscellaneous industry, which includes 56 stocks and has gained about 5.1% this year, indicating AMR's superior performance within this industry [3]

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] - A higher net profit margin compared to peers provides a competitive advantage for companies [2] Summary by Sections Net Profit Margin - Net profit margin is calculated as Net Profit/Sales * 100, reflecting the amount retained after all expenses [1] - A strong net profit margin is crucial for attracting investors and skilled employees, enhancing overall business value [1] Pros and Cons - Net profit margin offers clarity on a company's business model, including pricing, cost structure, and manufacturing efficiency, making it a preferred metric for investors [3] - However, the metric varies significantly across industries, and its effectiveness can be diminished by factors such as accounting treatments and debt financing [3] Winning Strategy - A healthy net profit margin combined with solid earnings per share (EPS) growth is essential for maximizing returns [4] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive EPS growth, a broker rating of 1 (extreme bullishness), a Zacks Rank of 1 or 2 (strong buy or buy), and a VGM Score of A or B for optimal upside potential [5] Company Highlights - **Virco Manufacturing Corporation (VIRC)**: Zacks Rank 1, VGM Score A, with a fiscal 2024 earnings estimate of $1.35 per share, reflecting a 20.5% increase in the last 60 days and an average surprise of 188.6% over the last four quarters [6] - **H&E Equipment Services, Inc. (HEES)**: Zacks Rank 1, VGM Score A, with a 2023 earnings estimate of $4.50 per share, maintaining a 21.4% average surprise over the last four quarters [6] - **Alpha Metallurgical Resources, Inc. (AMR)**: Zacks Rank 1, VGM Score A, with a 2023 earnings estimate of $44.60 per share, an 8.8% increase in the last 30 days, and a 9.6% average surprise [7] - **Photronics, Inc. (PLAB)**: Zacks Rank 1, VGM Score B, with a fiscal 2024 earnings estimate of $2.60 per share, reflecting a 15.6% increase in the last 60 days and an average surprise of 8.5% [8]

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies using fundamental analysis and traditional valuation metrics [1] Company Analysis: Alpha Metallurgical Resources (AMR) - AMR holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [2] - The stock has a P/E ratio of 8.56, significantly lower than the industry average of 11.15, with a 52-week range of 3.66 to 13.15 and a median of 5.64 [2] - AMR's P/B ratio is 3.58, compared to the industry's average P/B of 5.67, with a 52-week range of 1.31 to 3.72 and a median of 1.81 [2] - The P/S ratio for AMR is 1.67, which is lower than the industry's average P/S of 1.86, indicating a favorable valuation based on sales [3] - AMR's P/CF ratio is 5.63, well below the industry's average P/CF of 22.09, with a 52-week range of 1.46 to 5.84 and a median of 2.23 [3] Company Analysis: ClevelandCliffs (CLF) - CLF also holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, making it another attractive option for value investors [4] - The P/B ratio for CLF is 1.13, significantly lower than the industry's average P/B of 5.67, with a 12-month range of 0.88 to 1.46 and a median of 1.06 [4] Conclusion - Both Alpha Metallurgical Resources and ClevelandCliffs are identified as likely undervalued stocks, supported by strong earnings outlooks, making them appealing choices for value investors [4]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals that can sustain upward momentum [1]. Group 1: Stock Performance - Alpha Metallurgical (AMR) has shown a significant price increase of 68.8% over the past 12 weeks, indicating strong investor interest [2]. - In the last four weeks, AMR's price has increased by 15.1%, suggesting that the upward trend is still intact [2]. - AMR is currently trading at 93.8% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - AMR holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [3]. - The Average Broker Recommendation for AMR is also 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that AMR is not the only stock that meets the criteria of the "Recent Price Strength" screen, encouraging investors to explore other potential candidates [4]. - It highlights the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help identify winning stock picks [4]. - The Zacks Research Wizard tool allows backtesting of stock-picking strategies, enhancing the effectiveness of investment decisions [4].

Andrzej Rostek Introduction Although I mainly focus on dividend (growth) investing, I regularly cover other investment opportunities, including companies in areas of significant economic importance. After all, macroeconomic developments are a big part of my research. One of my favorite sectors to cover is energy, which includes coal. In the first coal-focused article this year, I want to highlight a company I have never covered before. That company is Alpha Metallurgical Resources (NYSE:AMR), one of the bes ...

Core Viewpoint - Alpha Metallurgical Resources (AMR) is the largest metallurgical coal producer in the U.S., expected to produce about 16 million tons of MET coal in 2024, while Arch Resources (ARCH) is projected to produce 9 million tons of MET coal and 65 million tons of thermal coal in the same year [4][8]. Production and Segments - AMR has transitioned to a pure-play MET coal producer after closing its last thermal coal mine [4]. - ARCH's thermal segment, while less emphasized, is expected to see local demand decline, leading to low capital investments in this area [9]. - ARCH's thermal coal sales are primarily domestic, resulting in lower margins compared to export markets [4]. Financial Performance - In 2022, 74% of ARCH's EBITDA came from the MET segment, which increased to 80-90% in 2023 due to diverging MET and thermal coal prices [7]. - ARCH's thermal segment is expected to generate about $100 million in gross profit in 2024, contributing positively to cash flows [11]. - Both companies are currently achieving strong margins in the MET coal market, with ARCH having lower operating costs despite some operational challenges [14]. Valuation and Cash Flow - Both AMR and ARCH are considered cheap, with free cash flow yields in the 15-30% range, but ARCH is viewed as more attractive based on valuations [18]. - AMR has been aggressive with buybacks, distributing 100% of free cash flow to shareholders, while ARCH has balanced buybacks and dividends [17]. - AMR's addition to the S&P Small Cap 600 index has contributed to its stock performance, with U.S. ETFs owning approximately 33% of AMR compared to 22% of ARCH [19]. Conclusion - ARCH is seen as slightly more attractive in terms of valuation and downside protection due to more stable cash flows from its thermal segment [19]. - AMR is favored for momentum and has a strong free cash flow yield even under conservative MET coal price assumptions [20].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Alpha Metallurgical Resources, Inc. (NYSE:AMR) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Emily O'Quinn - SVP, IR and Communications Andy Eidson - CEO Todd Munsey - CFO Jason Whitehead - President and COO Dan Horn - Chief Commercial Officer Conference Call Participants Lucas Pipes - B. Riley Securities FBR Nathan Martin - Benchmark Company Operator Greetings, and welcome to the Alpha Metallurgical Resources Third Quarter 2023 Results Conference Call. At this time all ...