Cloud Peak Energy Inc Stock Upgraded (CLD)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

NEW YORK (TheStreet) -- Cloud Peak Energy (NYSE:CLD) has been upgraded by TheStreet Ratings from hold to buy. Among the primary strengths of the company is its attractive valuation levels, considering its current price compared to earnings, book value and other measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

• ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

Highlights from the ratings report include:

• CLD, with its decline in revenue, underperformed when compared the industry average of 1.1%. Since the same quarter one year prior, revenues fell by 11.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• CLOUD PEAK ENERGY INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CLOUD PEAK ENERGY INC increased its bottom line by earning $3.13 versus $0.95 in the prior year. For the next year, the market is expecting a contraction of 42.5% in earnings ($1.80 versus $3.13).
• In its most recent trading session, CLD has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
• The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CLOUD PEAK ENERGY INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

Cloud Peak Energy Inc., through its subsidiaries, engages in the coal mining operations in the Powder River Basin and the United States. It produces and sells sub-bituminous thermal coal with low sulfur content primarily to electric utilities. The company has a P/E ratio of 8.9, equal to the average metals & mining industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Cloud Peak Energy has a market cap of $1.15 billion and is part of the basic materials sector and metals & mining industry. Shares are up 2.2% year to date as of the close of trading on Friday.

You can view the full Cloud Peak Energy Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

 

For more information on Cloud Peak Energy Inc click any of the following:

• Cloud Peak Energy Inc Stock Price

• Cloud Peak Energy Inc Analyst Ratings

• Cloud Peak Energy Inc Key Stats & Profile

• Cloud Peak Energy Inc Earnings

• Cloud Peak Energy Inc Ratio Comparison

• Cloud Peak Energy Inc Growth Rates

• Cloud Peak Energy Inc Balance Sheet

• Cloud Peak Energy Inc Cash Flow

• Cloud Peak Energy Inc Income Statement