Alliance Resource Partners, L.P. (ARLP) Soars 6.1%: Is Further Upside Left in the Stock?

Alliance Resource Partners, L.P. (ARLP) shares ended the last trading session 6.1% higher at $6.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5% gain over the past four weeks.

Alliance Resource Partners’ first-quarter earnings per unit were better than expected. The firm is benefiting from improving operational efficiency, which in turn is reducing operating expenses. Buying activity from domestic and international customers has enabled the company to secure new commitments for the delivery of nearly 5.4 million tons through 2023.

The firm is gaining from high oil, natural gas and natural gas liquids prices in the United States and greater-than-anticipated sales volumes have boosted performance of its Oil and Gas Royalties segment.

Price and Consensus

Price Consensus Chart for ARLPPrice Consensus Chart for ARLP
Price Consensus Chart for ARLP

This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +151.4%. Revenues are expected to be $375.1 million, up 47% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Alliance Resource Partners, L.P., the consensus EPS estimate for the quarter has been revised 11.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ARLP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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