4 Reasons That Brand Natural Resource (NRP) Wait Lucrative

Estimates for Natural Resource Partners LP NRP take been revised upward over the past lx days, reflecting analyst's confidence in the stock. The Zacks Consensus Estimate for 2019 earnings has been moved ii.4% due north to $5.18.

Houston, TX-based Natural Resource is a principal limited partnership, principally engaged in the business of owning, managing and leasing mineral reserve properties. The house owns coal reserves and coal handling plus transportation infrastructure across three major coal producing regions of the U.s.a., namely Appalachia, the Illinois Basin and the Western Us besides lignite reserves in the Gulf Coast region.

Let's focus on the factors that brand the stock noteworthy for investors.

Price Appreciation: The firm'southward units have surged 34.6% over the past 12 months confronting the manufacture'south decline of 23.4%.

VGM Score: The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and Thousand for Momentum with the score existence a weighted combination of all three factors. Back tested results prove that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.

Rising Coal Prices: The partnership stands to do good from recent improvements in the metallurgical coal markets. Increase in metallurgical coal prices will go out a positive impact on the firm's coal royalty revenues. It has all-encompassing metallurgical coal reserves, contributing to nearly 2/tertiary of its coal royalty revenues. Metallurgical coal is expansively used in the steel manufacture and per the Globe Steel Association forecast, global need for the same volition likely bump upwardly in 2019.

Lower Debt & Amend Liquidity: Over the years, the partnership has been reducing its outstanding debt level. As of Sep thirty, 2018, long-term debt was $716.five million, bettering the 2017-finish level of $729.6 one thousand thousand. Courtesy of this debt subtract, involvement expenses in the first 9 months of 2018 were $53.2 one thousand thousand, downwards 16.2% from the twelvemonth-agone level of $63.five 1000000.

Too, every bit of Sep 30, 2018, the visitor's leverage ratio stands at 3.5, much lower than the peak ratio of 5.iii at 2015-cease. The visitor'southward consequent focus on declining its debt and cementing its capital position volition further strengthen its fiscal standing.

Zacks Rank & Other Stocks to Consider

Natural Resource carries a Zacks Rank #2 (Buy). Some other peak-ranked stocks from the same sector are Canadian Solar Inc. CSIQ, SunCoke Energy, Inc. SXC and Warrior Met Coal Inc. HCC, each sporting a Zacks Rank #1 (Strong Buy). You tin can run across the complete listing of today'due south Zacks #1 Rank stocks here.

Canadian Solar delivered an earnings surprise of 49.66% in the last reported quarter. The Zacks Consensus Estimate for 2018 earnings has moved 53.two% northward to $2.65 over the past 60 days.

SunCoke Free energy pulled off a positive surprise of 302.65% in the trailing reported quarter. The Zacks Consensus Estimate for 2018 earnings has been revised 13.2% upward to 43 cents over the past threescore days.

Warrior Met Coal came upwardly with a trounce of 0.62% in the previous reported quarter. The Zacks Consensus Estimate for 2018 earnings has been raised three% to $viii.23 over the past 60 days.

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