Here's Why Arch Resources (ARCH) is a Strong Momentum Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Arch Resources (ARCH)

St. Louis, MO-based Arch Resources Inc. is one of the largest coal producers in the United States, operating nine mines across the major coal basins of the country. The locations of its mines and access to export facilities enable the company to ship coal worldwide. At 2021-end, it had 741.2 million tons of recoverable coal reserves. During the year ended Dec 31, 2021, it sold nearly 72.7 million tons of coal.

ARCH sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of A. The stock is down 8.8% and up 4.5% over the past one-week and four-week period, respectively, and Arch Resources has gained 198.5% in the last one-year period as well. Additionally, an average of 1,048,865.88 shares were traded over the last 20 trading sessions.

A company's earnings performance is important for momentum investors as well. For fiscal 2022, two analysts revised their earnings estimate higher in the last 60 days for ARCH, while the Zacks Consensus Estimate has increased $2.70 to $63.18 per share. ARCH also boasts an average earnings surprise of 10.7%.

ARCH should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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