Investors might want to bet on Peabody Energy (BTU) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syste ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. 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 and fundamental analysis to find compani ...

Here is the stock with buy rank and strong value characteristics for investors to consider today, October 7th: Peabody Energy (BTU) : This coal company which provides voice in advocating for sustainable mining, energy access and clean coal technologies, carries a Zacks Rank #1(Strong Buy), and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 6.3% over the last 60 days. Peabody Energy has a price-to-earnings ratio (P/E) of 8.49 compared with 9.40 for the industry. The company ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial . As many of you know, I've discussed this issue in previous articles, especially in the context of energy stocks. Today, I'm revisiting this topic with Analyst's Disclosure: I/we have a beneficial long position in the shares of LB, TPL either through stock ownership, options, or ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a ...

Shares of Peabody Energy (BTU) have gained 3.5% over the past four weeks to close the last trading session at $22.13, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $27.75 indicates a potential upside of 25.4%. The average comprises four short-term price targets ranging from a low of $24 to a high of $32, with a standard deviation of $3.30. While the lowest estimate indicates a ...

Investing in stocks, after analyzing the valuation metrics, is considered one of the best practices. The price-toearnings ratio has always been the obvious choice when considering the valuation metrics. This is because calculations based on earnings are easy and come in handy. However, the price-to-sales ratio is convenient for determining the value of stocks incurring losses or in an early development cycle, generating meager or no profit. What's the Price-to-Sales Ratio? While a loss-making company with a ...

Production and Sales - Peabody produced and sold 126.7 million and 126.2 million tons of coal, respectively, from continuing operations in 2023[120]. - Total tons sold decreased by 3.3 million tons (11%) to 25.6 million tons for the three months ended June 30, 2024, compared to 28.9 million tons in 2023[136]. - Total tons sold from operating segments decreased by 7.2 million tons (12%) to 52.9 million tons for the six months ended June 30, 2024, compared to 60.1 million tons in 2023[136]. - Tons sold for Seaborne Thermal reached 4.1 million, while Seaborne Metallurgical sold 2.0 million tons in the three months ended June 30, 2024[165]. - For the six months ended June 30, 2024, tons sold for Seaborne Thermal were 8.1 million and 3.4 million for Seaborne Metallurgical[167]. - The Company had approximately 100 million tons of U.S. thermal coal priced and committed for 2024, including 85 million tons of PRB coal and 15 million tons of other U.S. thermal coal[226]. Financial Performance - The company reported an increase in income from continuing operations of $6.7 million for Q2 2024, driven by a $109.5 million insurance recovery related to the Shoal Creek Mine[134]. - Adjusted EBITDA for the three and six months ended June 30, 2024 decreased by $48.5 million and $278.6 million year-over-year, respectively[135]. - Lower revenue of $226.8 million in Q2 2024 was attributed to no unrealized mark-to-market gains from derivative contracts and lower seaborne coal pricing[134]. - Total revenue decreased by $226.8 million (18%) to $1,042.0 million for the three months ended June 30, 2024, compared to $1,268.8 million in 2023[139]. - Net income attributable to common stockholders for the three months ended June 30, 2024, was $199.4 million, an increase of 11% compared to $179.2 million in the same period of 2023[158]. - Diluted earnings per share (EPS) for the three months ended June 30, 2024, was $1.42, reflecting a 23% increase from $1.15 in the prior year[159]. - The company reported a net cash provided by operating activities of $126.8 million, with available free cash flow at $(225.6) million for the six months ended June 30, 2024[169]. Segment Performance - Seaborne Thermal segment revenue decreased by $92.0 million (23%) to $307.5 million for the three months ended June 30, 2024, compared to $399.5 million in 2023[139]. - Seaborne Metallurgical segment revenue decreased by $78.2 million (21%) to $294.3 million for the three months ended June 30, 2024, compared to $372.5 million in 2023[140]. - Adjusted EBITDA for the Seaborne Thermal segment decreased by $93.1 million (47%) to $104.4 million for the three months ended June 30, 2024, compared to $197.5 million in 2023[143]. - Adjusted EBITDA for the Seaborne Metallurgical segment increased by $41.1 million (40%) to $143.6 million for the three months ended June 30, 2024, compared to $102.5 million in 2023[144]. - Other U.S. Thermal segment revenue increased by $2.1 million (1%) to $202.0 million for the three months ended June 30, 2024, compared to $199.9 million in 2023[141]. - Corporate and Other segment revenue decreased by $20.9 million (56%) to $16.3 million for the three months ended June 30, 2024, compared to $37.2 million in 2023[142]. Operational Developments - The Centurion Mine's redevelopment is progressing, with the first coal shipments expected in Q4 2024 and longwall production targeted to commence in Q1 2026[129]. - The Shoal Creek Mine's increased production following a fire in Q1 2023 contributed $88.4 million to Adjusted EBITDA, despite operational challenges in 2024[145]. - The company recognized a $109.5 million insurance recovery in June 2024 from the Shoal Creek Mine fire incident[133]. - Unfavorable volumes in the Powder River Basin segment led to a decrease of $14.1 million (three months) and $44.9 million (six months) in Adjusted EBITDA, despite lower costs for materials and services[145]. Regulatory and Environmental Factors - The EPA revised the primary standard for fine particulate matter (PM 2.5) from 12.0 µg/m³ to 9.0 µg/m³, which may impact operational costs for fossil fuel electric generating units[172]. - The EPA's final rule mandates existing fossil fuel-fired steam EGUs to achieve a 90% CO capture rate by January 1, 2032, impacting long-term operational plans[176]. - The EPA's revised effluent limitations guidelines, effective May 9, 2024, will significantly increase costs for coal-fueled steam electric power plants, particularly for wastewater discharge[178]. - The SEC's climate-related disclosure rules, adopted on March 6, 2024, will require public companies to disclose climate-related risks and GHG emissions, pending judicial review[185]. - The NSW Environmental Protection Agency's new legislation increases penalties for environmental offenses and enhances regulatory powers[187]. Cash and Liquidity - As of June 30, 2024, the company's cash and cash equivalents totaled $621.7 million, a decrease from $969.3 million as of December 31, 2023[194][195]. - The company's total liquidity as of June 30, 2024, was $940.8 million, down from $1,059.7 million at the end of 2023[195]. - The company had a net cash used in investing activities of $316.8 million for the six months ended June 30, 2024, primarily due to the acquisition of Wards Well for $143.8 million[216]. - The company must maintain a minimum liquidity of $400 million or the difference between the penal sum of all surety bonds and the amount of collateral posted, which was $508.6 million at June 30, 2024[198]. - The company had no outstanding borrowings under its accounts receivable securitization program as of June 30, 2024, with $56.2 million of letters of credit outstanding[211]. Debt and Interest - The company’s cash payments for interest related to its indebtedness amounted to $24.1 million during the six months ended June 30, 2024[208]. - The company had total indebtedness as of June 30, 2024, of $337.3 million, slightly up from $334.2 million at the end of 2023[207]. - The company has a maximum net leverage ratio requirement of 1.5 to 1.0, which it was compliant with as of June 30, 2024[198][213].

Financial Data and Key Metrics Changes - In Q2 2024, the company reported net income attributable to common stockholders of $199.4 million, or $1.42 per diluted share, and adjusted EBITDA of $309.7 million [10][11] - The company reached an insurance settlement for $109.5 million, with $80.8 million included in adjusted EBITDA [10][11] - Cash at June 30 was $622 million after significant tax payments and acquisitions [11] Business Segment Data and Key Metrics Changes - Seaborne Thermal recorded $104 million in adjusted EBITDA, a $10 million increase from the prior quarter, with an adjusted EBITDA margin of 34% [12] - The Seaborne Met segment generated $144 million of adjusted EBITDA, including the insurance settlement, marking a 30% increase compared to the first quarter [13] - U.S. thermal mines produced $53 million of adjusted EBITDA, with PRB shipments at 15.8 million tons, below first quarter volumes due to the shoulder season [14] Market Data and Key Metrics Changes - The Newcastle high-energy thermal coal spot price averaged $136 per metric ton during Q2 [7] - Asian thermal coal imports increased, with China and Vietnam showing year-to-date increases of approximately 15% and 37%, respectively [7] - Premium hard coking coal prices averaged $242 per metric ton, with supply disruptions supporting prices [8][9] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through share buybacks and organic growth, particularly at the Centurion project [4][5] - The acquisition of the Wards Well deposit extends the mine life to over 25 years, with an average annual production of approximately 4.7 million tons [5] - The company plans to ship coal from the Centurion mine to customers in Q4 2024 and is on target for longwall coal in Q1 2026 [4][5] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of 2024, citing a resilient balance sheet and operational recovery [3][4] - The company adjusted full-year guidance due to high customer inventories and low natural gas prices, but expects robust free cash flow in the second half [15] - Management noted that geological challenges at CMJV and lock outages would impact volumes but are being managed effectively [27][28] Other Important Information - The company announced an additional $100 million for opportunistic share repurchases, reflecting a commitment to shareholder returns [4][11] - The U.S. thermal coal market saw a slight increase in electricity generation year-over-year, despite low natural gas prices [10] Q&A Session Summary Question: Capital allocation and buybacks - Management clarified that the additional $100 million for buybacks reflects a commitment to shareholder value and is part of a flexible capital allocation strategy [19][21][22] Question: M&A opportunities - Management emphasized a focus on organic growth and maintaining financial stability over pursuing M&A opportunities at this time [25][26] Question: Operational outlook on met coal - Management discussed geological issues at CMJV and the anticipated impact of lock outages on volumes, estimating potential costs associated with mitigation efforts [27][28][29] Question: Centurion project updates - Management confirmed that all permits are in place for the Centurion project and provided updates on expected shipments and spending [34][36][44]

PE THE ATTACT p ub 197 Int HI and and i I 1000 I I E I 1 - 1 - 1 1 10-11 I 1000 E # n I 889 HD 1 1 800 0 1 I Monty Rakusen Overview Peabody Energy Corporation (NYSE:BTU) is a U.S.-domiciled coal mining company with producing mines in the U.S. and Australia. A large amount of production comes from the Power River Basin and Other U.S. Thermal segments in the United States. However, most of the company's adjusted EBITDA typically comes from the two seaborne segments, where the production is concentrated in Aus ...