Peabody Energy Corporation (BTU )saw a big move in the last trading session, as the company’s shares fell by nearly 19% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent trend for BTU, as the stock is now down over 48% in the past one-month time frame.
On Jul 1, the company announced that its chief financial officer, Michael Crews, will step down at the end of July, to be replaced by Amy Schwetz. The company also announced recently that it would miss a profit forecast because of adverse weather conditions and lower coal prices.
This slump shouldn’t be too much of a surprise to investors, as the largest U.S. coal mining company has seen 1 negative revision in the past few weeks and its current year loss consensus has also widened over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
BTU currently holds a Zacks Rank #4 (Sell) while its Earnings ESP is 0.00%.
Investors interested in the Coal industry may consider a better-ranked stock like Rhino Resource Partners LP (RNO), carrying a Zacks Rank #2 (Buy).
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