A level of support has formed in the chart of SunCoke Energy Inc. (SXC). The stock has recently rallied off that level, but if it reverses course and falls through its support, a breakdown is expected. Read more to learn how to profit from this trade.SunCoke Energy Inc. (SXC) operates as an independent producer of coke in the Americas. It offers metallurgical and thermal coal. The company also provides handling and/or mixing services to steel, coke, electric utility, coal producing, and other manufacturing-based customers.
The company has benefited from an increased global demand for steel. SXC specializes in cokemaking, which is the process of heating coal to very high temperatures to produce a solid carbonaceous residue. Cokemaking is key in producing steel and since there is tight supply, prices remain elevated.
The firm has a current ratio of 1.6, which means that it has more than enough liquidity to handle short-term obligations. This has led to a Quality Grade of B in our POWR Ratings system. While its EBITDA is down 13% over the past year, it is expected to rise 20% over the next year.