Stock of the Day

November 2, 2022

Alliance Resource Partners (ARLP)

$24.42
-$0.17 (-0.7%)
Market Cap: $3.16B

About Alliance Resource Partners

Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it owns and leases oil and gas mineral interests and equity interests; and leases its coal mineral reserves and resources to its mining complexes; and leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. It also exports its products. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma.

Today's Trend

Alliance Resource Partners, L.P. (NASDAQ: ARLP) appears to be edging higher as investors react to a mix of analyst estimate changes and a generally constructive valuation narrative.

  • Noble Financial raised its FY2026 earnings estimate for Alliance Resource Partners to $2.52 per share, matching the current consensus and suggesting earnings expectations remain stable near the near-term outlook.
  • The same analyst also increased its Q2 2026 EPS estimate to $0.62 from $0.54, which points to improving expectations for the next quarterly report.
  • Another recent note from Zacks highlighted the possibility that investors may be undervaluing ARLP, reinforcing the idea that the stock could still have room to rerate higher. Article Title
  • Wall Street analysts still see upside in the stock, with Zacks citing a consensus price target implying about 25.3% upside, though this is more of a valuation signal than a direct catalyst. Article Title
  • Noble Financial trimmed some longer-term earnings estimates, including FY2028, FY2029, and FY2030, which could temper enthusiasm about the company’s growth trajectory.
  • The stock may also be carrying some baggage from its prior earnings miss, when ARLP reported $0.07 EPS versus expectations of $0.35, reminding investors that execution risk remains.

Overall, Alliance Resource Partners (NASDAQ: ARLP) is being helped today by analyst optimism around near-term earnings and a belief the shares may be undervalued, while longer-term estimate cuts and the last earnings miss keep sentiment from turning decisively bullish.

Recent News