Which Is The Better? Walter Energy Inc (WLT) and Consol Energy Inc (CNX)
New York, NY – GDP INSIDER – 04/06/2015.
This article discusses two companies: Walter Energy Inc (NYSE:WLT) and Consol Energy Inc (NYSE:CNX)
Walter Energy Inc (NYSE:WLT) ticked up on Thursday after its recent downward slide, with the stock gaining 7.81% or $0.05 to close at $0.69 on fairly light trading of 2.068 million shares compared, to its three month average trading average of 3.204 million. The producer and exporter of metallurgical coal for the steel industry has been trading down for much of this year, in line with most companies in the sector and the stock is still 49.28% lower so far this year. Even though the stock has now started climbing, the overall outlook for the coal sector is not especially positive, with the strong dollar impacting exports and natural gas prices falling. As natural gas prices fall it negatively impacts coal, as it is a cheaper alternative however, Walter Energy Inc exports most of its production, which may insulate it somewhat. Despite this, the stock is still a risky investment making it a sell rather than a hold.
Consol Energy Inc (NYSE:CNX) continued to fluctuate on Thursday with the stock gaining 4.90% or $1.36 to close at $29.09 with more than 3.067 million shares changing hands, compared to its three month average trading volume of 3.546 million shares. The producer of natural gas and coal for global energy and raw materials markets has been trending down for most of the last 52 weeks but has recently experienced a bullish MACD crossover. The coal industry has been nothing but doom and gloom for a long time and it is unlikely to perk up significantly in the medium term. The shares still have good long term investment potential however, and with quarterly revenue growth of 11.30% year on year and diluted EPS of $0.71, Consol Energy is in a better position than many of its competitors. Even a minor change in the sector could boost the stock to a positive gain, making it a hold at the moment.
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