Earnings estimates for SunCoke Energy Inc. (NYSE:SXC) have been revised upward over the past 90 days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2019 earnings of the company has moved 22.2% north to 44 cents in the said period.
The company, which is among the largest coke producers in North America, supplies high-quality coke to major steel producers. SunCoke Energy has a capacity to produce 4.2 million tons of coke per annum, accounting for 30% of total U.S. coke production.
Let’s focus on the factors that make SunCoke Energy an attractive stock at the moment:
Price Appreciation: Shares of SunCoke Energy have inched up 11.8% compared with its industry’s gain of 0.6% over the past month. The stock currently has a Zacks Rank #2 (Buy).
VGM Score: The stock has a favorable VGM Score of B. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors. Back-tested results show that stocks with a VGM Score of A or B coupled with a favorable Zacks Rank offer the best investment bets.
Earnings Estimates & Surprise Record: The company’s 2019 earnings are pegged at 44 cents, reflecting nearly 2.3% year-over-year growth. Its bottom line surpassed the consensus mark in the last four reported quarters, with the average being 302.65%.
Steady Cash Flow: SunCoke Energy’s long term, fee-based, take or pay contracts ensure a steady cash flow. The new advanced technology used by the company results in production of larger and stronger coke, ensuring steady demand for coke from the steel producers.
Domestic Coke Fundamentals: SunCoke Energy is well poised to gain from positive domestic coke fundamentals. Limited domestic supply alternatives and unattractive import choices make it a preferred choice for steel producers. In addition, the company provides critical logistics support to steelmakers and utility companies through its strategically located terminals and modern facilities.
Other Stocks to Consider
Other top-ranked stocks from the Zacks Oil & Gas sector include CONSOL Coal Resources LP (NYSE:CCR) , Warrior Met Coal Inc. (NYSE:HCC) and NextEra Energy (NYSE:NEE) Partners, LP (NYSE:NEP) , each flaunting a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CONSOL Coal Resources pulled off average positive surprise of 23.56% in the trailing four quarters. The Zacks Consensus Estimate for 2019 EPS moved 1.4% up over the past 60 days to $2.13.
Warrior Met Coal delivered average four-quarter beat of 0.62%. The consensus mark for 2018 EPS has been revised 14.7% upward over the past 60 days to $6.00.
NextEra Energy Partners came up with average four-quarter earnings surprise of 99.08%. The consensus estimate for 2019 EPS has been upwardly revised by 8.5% over the past 60 days to $2.04.
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