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Alliance Resource Partners has the Highest Forward Earnings Yield in the Coal & Consumable Fuels Industry (ARLP, NRP, AHGP)

Published on Mon, 10/21/2013 - 10:08
By Mallory Stone

Below are the three companies in the Coal & Consumable Fuels industry with the highest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Alliance Resource Partners (NASDAQ:ARLP) is highest with forward earnings yield of 9.6%. Alliance Resource Partners, L.P. produces and markets coal to United States utilities and industrial users. The Company operates its facilities in Kentucky, Illinois, and Maryland.

There is potential upside of 6.3% for shares of Alliance Resource Partners based on a current price of $75.66 and an average consensus analyst price target of $80.40. Alliance Resource Partners shares should encounter resistance at the 50-day moving average (MA) of $76.10 and support at its 200-day MA of $70.14.

Natural Resource Partners (NYSE:NRP) is next with forward earnings yield of 7.7%.

Finishing up the top three is Alliance Holdings (NASDAQ:AHGP), with forward earnings yield of 6.4%.

By Mallory Stone