Bear of the Day: Alpha Metallurgical Resources (AMR)

Core Viewpoint - Alpha Metallurgical Resources (AMR) is identified as a vulnerable stock despite being in a hot industry, with significant negative earnings revisions leading to its designation as today's Bear of the Day [1]. Company Summary - AMR, a metallurgical coal producer, benefited from post-pandemic steel demand and the energy crisis of 2022, but these favorable conditions are diminishing [2]. - The company specializes in met coal for steelmaking, which theoretically provides a resilient profile, but market sentiment has shifted negatively [3]. - AMR currently holds a Zacks Rank of 5 (Strong Sell), indicating severe negative earnings estimate revisions [4]. Earnings Performance - Over the past 90 days, the Zacks Consensus Estimate for AMR's current year earnings has dropped from $11.75 to a loss of $5.95 per share, while next year's estimates fell from $41.59 to $17.65 [5]. - The company has missed earnings expectations for three consecutive quarters, with shortfalls of 70%, 128%, and 81% [5]. Industry Context - The Mining – Miscellaneous industry is ranked in the Bottom 33% of Zacks Industry Rank, although some stocks within the industry, such as Contango ORE (CTGO) and Materion (MTRN), maintain a Zacks Rank of 1 (Strong Buy) [6].