The IBD SmartSelect Composite Rating for Peabody Energy rose from 94 to 96 Thursday. In addition, the RS rating is 98 with an RS Line near new highs.
The new rating is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The best stocks tend to have a 95 or better grade as they start a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
Peabody Energy is not currently near a proper buy zone. Look for the stock to form and break out of a new base.
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One weak spot is the company's 50 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.
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In Q2, the company posted 1,081% EPS growth. Sales growth increased 83%, up from 6% in the prior quarter. That marks one quarter of increasing revenue increases. The company's next quarterly report is expected on or around Oct. 28.
Peabody Energy earns the No. 6 rank among its peers in the Energy-Coal industry group. Alpha Metallurgical Res, Arch Resources and Alliance Resource Partners are among the top 5 highly-rated stocks within the group.
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