As we've hit the halfway point for 2012, now's a good time to look back at what's happening with the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Arch Coal
Stats on Arch Coal
|2012 YTD Return||(50.5%)|
|Market Cap||$1.50 billion|
|Revenue, Most Recent Quarter||$1.04 billion|
|Year-Over-Year Revenue Growth, Most Recent Quarter||19.1%|
|Net Income, Most Recent Quarter||$1.2 million|
|Year-Over-Year Net Income Growth, Most Recent Quarter||(97.8%)|
|CAPS Rating (out of 5)||****|
Source: S&P Capital IQ.
Why hasn't Arch Coal caught fire this year?
Energy markets are intertwined; changes in one market have impacts on other markets. The years-long boom in natural gas production that resulted from innovative drilling techniques to take advantage of deposits in shale formations has changed the economics of energy. With natural gas prices still near decade-lows, Duke Energy
The fallout in the coal industry has been extreme, and Arch Coal can hardly count itself as the worst affected. Both Alpha Natural Resources
As Fool contributor Sean Williams has pointed out, though, coal will continue to be a major part of the energy picture in the U.S. and beyond. With costs of converting electrical facilities to natural gas adding up to nearly three-quarters of a trillion dollars, it'll take a long time for coal to disappear even if everyone wants it to go away.
Arch Coal is down and out right now, but it has good long-term prospects if it can weather the storm. But if you'd rather pick an energy stock that won't make you wait, we've got an idea that has a better chance to deliver strong gains sooner. Read about it right here in The Motley Fool's special free report on the energy industry and its best prospects.
Click here to add Arch Coal to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.