Stocks to Track: Cloud Peak Energy Inc. (CLD)

Company Profile:

Cloud Peak Energy Inc., through its subsidiaries, produces coal in the Powder River Basin (PRB) and the United States. The company operates through Owned and Operated Mines, Logistics and Related Activities, and Corporate and Other segments. It produces and sells sub-bituminous thermal coal with low sulfur content primarily to electric utilities operating in the United States and internationally. The company owns and operates the Antelope mine and Cordero Rojo mine located to the south of Gillette, Wyoming; and the Spring Creek mine located in Montana. Its development projects include the Youngs Creek project and the Crow project in the Northern PRB. Cloud Peak Energy Inc. is headquartered in Gillette, Wyoming.

Recent News:

Cloud Peak Energy Inc. beat analyst estimates on the adjusted net losses front in 2Q15. The company’s adjusted net losses, at $16.9 million, were lower than Wall Street analyst estimates of $20.0 million. The company now expects to sell 74 million–78 million tons in 2015, implying shipments of around 40 million tons in 2H15 at the mid-point of the guidance.

Cloud Peak Energy Inc., SSA Marine, and the Crow Tribe of Indians today announced that the Crow Tribe and Cloud Peak Energy are joining SSA Marine as partners in the Gateway Pacific Terminal, located in the Northwest corner of Washington state.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CLD’s strengths can be seen in its better profitability and solvency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 51.10. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Cloud Peak Energy Inc. (CLD) a BUY.