Earnings Working Against Arch Resources, Inc.'s (NYSE:ARCH) Share Price

Simply Wall St.10-15

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 19x, you may consider Arch Resources, Inc. (NYSE:ARCH) as an attractive investment with its 10.2x...

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(NYSE:ARCH) as an attractive investment with its 10.2x...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-arch/arch-resources/news/earnings-working-against-arch-resources-incs-nysearch-share\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Earnings Working Against Arch Resources, Inc.'s (NYSE:ARCH) Share Price</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEarnings Working Against Arch Resources, Inc.'s (NYSE:ARCH) Share Price\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-15 03:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-arch/arch-resources/news/earnings-working-against-arch-resources-incs-nysearch-share><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may consider Arch Resources, Inc. (NYSE:ARCH) as an attractive investment with its 10.2x...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-arch/arch-resources/news/earnings-working-against-arch-resources-incs-nysearch-share\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ARRHW","symbol_name":"Arch Resources, Inc.","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-arch/arch-resources/news/earnings-working-against-arch-resources-incs-nysearch-share","article_id":"2475992346","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2052001-choice2-main-header/1585186680440"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2475992346","pubTimestamp":1728934829,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ARRHW":"Arch Resources, Inc.","ARCH":"Arch Resources Inc.","NYSE":"纽交所"},"translate_title":"盈利与Arch Resources,Inc.（纽约证券交易所股票代码：ARCH）股价背道而驰","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ARCH":1,"ARRHW":1,"NYSE":1},"content_text":"When close to half the companies in the United States have price-to-earnings ratios (or \"P/E's\") above 19x, you may consider Arch Resources, Inc. (NYSE:ARCH) as an attractive investment with its 10.2x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.     Arch Resources has been struggling lately as its earnings have declined faster than most other companies.   It seems that many are expecting the dismal earnings performance to persist, which has repressed the P/E.  You'd much rather the company wasn't bleeding earnings if you still believe in the business.  If not, then existing shareholders will probably struggle to get excited about the future direction of the share price.      See our latest analysis for Arch Resources NYSE:ARCH Price to Earnings Ratio vs Industry October 14th 2024 Keen to find out how analysts think Arch Resources' future stacks up against the industry? In that case, our free report is a great place to start.  Does Growth Match The Low P/E?   There's an inherent assumption that a company should underperform the market for P/E ratios like Arch Resources' to be considered reasonable.   Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 72%.   This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total.  So it appears to us that the company has had a mixed result in terms of growing earnings over that time.     Shifting to the future, estimates from the five analysts covering the company suggest earnings should grow by 8.0% each year over the next three years.  With the market predicted to deliver 10% growth  per annum, the company is positioned for a weaker earnings result.  With this information, we can see why Arch Resources is trading at a P/E lower than the market.  It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.    The Key Takeaway  Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.  As we suspected, our examination of Arch Resources' analyst forecasts revealed that its inferior earnings outlook is contributing to its low P/E.  At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio.  Unless these conditions improve, they will continue to form a barrier for the share price around these levels.      Having said that, be aware  Arch Resources is showing 2 warning signs in our investment analysis, you should know about.   It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2475992346"}