CONSOL Energy Inc. is a coal mining and services company that produces and exports high-bituminous thermal and crossover metallurgical coal. The company owns and operates mines located in various regions across the US, including the Appalachian region and the Illinois Basin.
The company recently released upbeat results, showing a strong start to the year. Adjusted earnings per share (EPS) climbed more than 100%, which was ahead of expectations, while revenue gained 22.5% for 1Q23. While the global shift to clean energy will result in a decades-long gradual decline in production and demand for non-renewable resources, coal remains the most abundant energy resource in the world and a key component for global advancement. The company remains well-positioned to benefit from the prevailing demand for coal supply amid the global energy transition.
A confluence of technical indicators (the occurrence of various technical indicators pointing toward a similar outcome) suggest that Costco makes for a good investment opportunity at the moment.
Technically, a falling wedge pattern emerging within the recent uptrend signals a promising investment opportunity (see the black converging trendlines as well as the insert). A breakout above the upper trendline of the pattern is seen as confirmation of a bullish reversal, suggesting that the price is likely to trend higher.
The start of upward momentum according to the MACD indicator, as well as the recent upwards movement of the OBV indicator, supports our bullish stance.
We suggest a low at-risk allocation for this trade and apply a medium technical rating to the analysis.
Share Information
| Share code | CEIX |
|---|---|
| Industry | Energy |
| Market Capital (USD) | 2.17 billion |
| One year total return | 37.38% |
| Return year-to-date | 0.26% |
| Current price(USD) | 63.90 |
| 52 weeek high(USD) | 79.17 |
| 52 week low(USD) | 39.62 |
| Financial year end | December |
| Closing paragraph | The stock is testing its 200-day simple moving average, which suggests that the long-term uptrend may continue. We expect high price volatility going forward. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 13.07 | 21.73 | 19.89 | 14.96 |
| Growth (%) | 66.28 | -8.48 | -24.79 | |
| Dividend Per Share (USD) | - | - | - | - |
| Growth (%) | - | - | - | |
| Forward PE (times) | 2.94 | 3.21 | 4.27 | |
| Forward Dividend Yield (%) | - | - | - | |
| Closing paragraph | As the outlook for energy services remains robust, FY23 growth prospects remain strong, although this is expected to normalise over the medium-term. | |||
Buy/Sell Rationale
Technical Analysis:
Fundamental view:
| Share Name and position |
MSFT - Profit Take (Close the position) |
PEP - Buy (Continue to hold) |
MA - Buy (Continue to Hold) |
|---|---|---|---|
| Entry | 276.20 | 178.01 | 354.44 |
| Current | 305.41 | 192.25 | 376.03 |
| Movement | 10.6% | 8.0% | 6.1% |
| Summary text |
The price recently breached a major resistance level. The stock is trading above its 200-day simple moving average, but upside momentum has halted – a concern to the bullish trend.
Our profit target is $300.00, with a trailing stop-loss of $287.50. Time exit: 9 June 2023. |
The stable bullish trend remains of interest. The stock price remains above its 200-day simple moving average. Upside momentum supports the bullish trend.
Our profit target is $200.00 with a trailing stop-loss of $186.40. Time exit: 10 May 2023. |
The stock price is showing an incomplete ascending triangle pattern and trading above its 200-day simple moving average. Upside momentum supports the bullish trend.
Our profit target is $395.00, with a trailing stop-loss of $359.50. Time exit: 26 May 2023. |
| Share Name and position |
KO - Buy (Continue to Hold) |
STZ - Buy (Continue to hold) |
ADBE - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 61.85 | 228.16 | 373.40 |
| Current | 64.01 | 228.56 | 368.66 |
| Movement | 3.5% | 0.2% | -1.3% |
| Summary text |
A symmetrical triangle pattern continues to be noteworthy. Remains above its 200-day simple moving average. Upside momentum has halted, a concern to the bullish trend.
Our profit target remains at $67.00, with a trailing stop-loss at $62.10. Time exit: 16 June 2023. |
A bullish megaphone pattern remains of interest. The stock remains just below its 200-day simple moving average but is moving closer to it. Upside momentum supports the bullish trend.
The take profit target remains at $252.00 and a trailing stop-loss at $218.50. Time exit: 21 June 2023. |
The price symmetry is still a point of interest as it continues to stay just above its 200-day simple moving average. However, upside momentum remains halted, which is a concern.
The take profit target remains at $440.00 and a trailing stop-loss at $350.00. Time exit: 28 June 2023. |
