Arch Resources stock saw an improvement in its IBD SmartSelect Composite Rating Wednesday, from 94 to 98. The coal producer has a 99 Relative Strength Rating.
The upgrade means the stock currently tops 98% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
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Is Arch Resources Stock A Buy?
Arch Resources stock has now climbed above a proper buy zone after breaking out from a 104.80 entry in a cup with handle. Although this coal stock is currently extended, investors should put this name on a watch list and wait for the stock to form a pattern with a new buying opportunity. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
One weak spot is the company's 70 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
Keeps On Growing
The company reported a 331% EPS gain for Q4. Revenue growth rose 123%, up from 55% in the prior quarter. That marks six quarters of rising growth.
Arch Resources stock earns the No. 1 rank among its peers in the Energy-Coal industry group. Peabody Energy and Natural Resource Partners are also among the group's highest-rated stocks. For more industry news, check out "Energy Stocks And Industry News: Oil, Gas, Solar, Coal."
