Bear of the Day: Alpha Metallurgical Resources (AMR)

Just because you’re in a hot industry doesn’t mean your stock is a buy. And just because you used to crush earnings doesn’t mean you will continue doing so. Sometimes, the market sniffs out weakness before the numbers show up, and right now, Alpha Metallurgical Resources (AMR) is giving off that distinct whiff of vulnerability and it’s why I’m naming it today’s Bear of the Day.AMR had its moment in the sun. As a metallurgical coal producer riding the coattails of global steel demand, it was a benefactor of the post-pandemic rebuild and the energy squeeze of 2022. But those tailwinds are no longer gusting with the same ferocity. With China’s construction boom in question, steel production leveling off, and global energy normalization underway, AMR is feeling the pressure.The company, which operates primarily in the Appalachian region, specializes in met coal used for steelmaking, not the dirty stuff used to keep your grandma’s furnace warm. That should give it a more resilient profile, right? In theory. But Wall Street isn’t buying it anymore, and neither are analysts.What makes AMR today’s Bear of the Day is its Zacks Rank #5 (Strong Sell). That’s the lowest rank we give, reserved for companies facing a flurry of negative earnings estimate revisions. And AMR’s revisions have been downright ugly.Over the past 90 days, the Zacks Consensus Estimate for the current year has plummeted from $11.75 to a loss of $5.95 per share. Next year is singing a very similar tune, with estimates coming down from $41.59 to $17.65. The company has also missed three consecutive quarters of earnings. They’ve come up 70% short, 128% short, and 81% short over that period.The bulls will point to the turnaround next year to make their case. If they can deliver, I’ll buy that story, but with three consecutive disappointments and estimates continuing to drop it feels like a risky proposition.The Mining – Miscellaneous industry is in the Bottom 33% of our Zacks Industry Rank but there are some stocks within the industry that are in the good graces of our Zacks Rank. These include Zacks Rank #1 (Strong Buy) stocks Contango ORE (CTGO) and Materion (MTRN).#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR): Free Stock Analysis Report Materion Corporation (MTRN): Free Stock Analysis Report Contango ORE, Inc. (CTGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks