Arch Resources is a hold at resistance amid an upgrade at Jefferies

Arch Resources Inc. (NYSE:ARCH) has returned almost 70% year-to-date. The coal mining and processing company is among those benefiting from the harsh macro environment. We believe Arch has more room to run, and investors should hold the stock.

In its latest quarter, Arch posted earnings per share of $12.89. The earnings compared to a loss of $0.40 in the prior year, despite missing estimates of $13.03. Revenue for the quarter came at $867.9 million. The revenue was more than double from $357.5 million the prior year and higher than the $725.3 million estimates.

Arch’s recent strengths have also been boosted by an upgrade at Jefferies. Analysts gave a buy rating from the prior hold. The price target was raised from $160 to $225, representing an upside potential of 40%. Analysts tracked by Tipranks have a strong buy rating on the stock, with an average target of $219.67.

Arch Resources eyes a breakout after holding key level intact

Source: TradingView

Technically, Arch is trading close to its all-time high of $180 when it signaled overbought conditions. The stock retreated a bit but is holding strong to the $154 support. We believe the strong fundamentals will drive the stock higher. Investors should hold or add positions to ride the bullish momentum. 

Concluding thoughts

Arch Resources stock has massive returns this year. The stock is holding strong momentum and is well rated by Wall Street. The stock is still pushing higher from a key level amid strong fundamentals and upgrades. We recommend investors hold the stock or add new positions for more returns.

The post Arch Resources is a hold at resistance amid an upgrade at Jefferies appeared first on Invezz.

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