Here is a preview of what analysts are expecting to hear Monday morning from these two companies.
Alliance Resource Partners
Shares of coal producer Alliance Resource Partners L.P. (NASDAQ: ARLP) have increased more than 87% in the past 12 months. For the year to date, the shares are up more than 97%. Demand for coal is expected to rise to 8 billion metric tons this year, matching a record high posted in 2013. High natural gas prices and economic growth in India have driven demand while slower economic growth in China has acted as a brake on prices. The International Energy Agency (IEA) expects demand for coal to rise in 2023.
Alliance receives virtually no analyst coverage. Two analysts have given the stock a Buy rating, with a median price target of $28.00. At a recent price of around $23.60 a share, the implied upside is 18.6%.
For the third quarter, Alliance is expected to post sales of $670.77 million, which would be up 8.8% sequentially and almost 50% year over year. Adjusted EPS are forecast at $1.54, up nearly 25% sequentially and by 250% year over year. Full-year EPS are forecast at $4.78, an increase of more than 250%, and revenue for the year is estimated to rise by about 55.4% to $2.44 billion.
Alliance stock trades at about 4.9 times expected 2022 EPS, 3.7 times estimated 2023 earnings of $6.36 and 3.2 times estimated 2024 earnings of $7.46 per share. The stock’s 52-week trading range is $9.66 to $27.63. Alliance pays an annual dividend of $1.60 (yield of 6.79%). Total shareholder return for the past 12 months was 101.7%.
ON Semiconductor
Since posting an all-time high share price in late August, ON Semiconductor Corp. (NASDAQ: ON) has seen its share price drop by more than 24%, before recovering more than 17% over the past 10 days. The bounciness adds up to a 12-month share price gain of about 47% and flat performance for the year to date. ON Semi’s products are sold into industrial end-user markets like automakers, markets that are expected to outperform the consumer markets for personal computers, smartphones and other gadgets in the near term.
Of the 29 analysts covering the stock, 21 have a Buy or Strong Buy rating. The other eight rate the shares a Hold. At a share price of around $67.70, the implied share price gain based on a median price target of $75.00 is 10.8%. At the high price target of $90.00, the implied gain is 32.9%.
Third-quarter revenue is forecast at $2.12 billion, up 1.5% sequentially and 21.8% higher year over year. Adjusted EPS are forecast at $1.31, down 2% sequentially but up 50.6% year over year. For the full 2022 fiscal year, analysts have estimated EPS of $5.12, up 73.7%, on a sales jump of 22.1% to $8.23 billion.
ON Semi’s stock trades at about 13.2 times expected 2022 EPS, 13.9 times estimated 2023 earnings of $4.89 and 13.1 times estimated 2024 earnings of $5.16 per share. The stock’s 52-week range is $43.74 to $76.78. The chipmaker does not pay a dividend, and total shareholder return over the past year was 50.1%.
Originally published at 24/7 Wall St.
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