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Consol Energy (CEIX) Moves 6.4% Higher: Will This Strength Last?

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Consol Energy (CEIX) shares rallied 6.4% in the last trading session to close at $50.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.2% loss over the past four weeks.

CONSOL Energy enjoys the benefit from hike in coal prices, strong production volumes, proper cost management and higher demand for coal from domestic and international customers. Courtesy of improving demand, the company has been able to secure additional coal sales contracts and remain fully-contracted for 2022 and have increased 2023 sold position to 16.3 million tons. CONSOL Energy’s Itmann metallurgical coal project is expected come online during second half of 2022, which will further boost production volumes.

Courtesy of strong performance the company continued with debt repurchases and strengthened its balance sheet. CONSOL Energy further strengthened its balance sheet by making a total debt repayment and repurchase of $38.5 million during the first-quarter of 2022.

This coal company is expected to post quarterly earnings of $1.99 per share in its upcoming report, which represents a year-over-year change of +243.1%. Revenues are expected to be $433.2 million, up 50.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Consol Energy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CEIX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Consol Energy is a member of the Zacks Coal industry. One other stock in the same industry, SunCoke Energy (SXC), finished the last trading session 3% higher at $6.87. SXC has returned -20% over the past month.

SunCoke's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.26. Compared to the company's year-ago EPS, this represents a change of +62.5%. SunCoke currently boasts a Zacks Rank of #3 (Hold).

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