And the largest coal-based energy producer in the U.S. could jump more due to strong demand and its diversifying energy portfolio. But another likely reason is Big Money lifting the stock.
Alliance Resource Partners Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Alliance Resource Partners has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at the Big Money signals ARLP has made over the last year.
The last few weeks have seen Big Money activity too. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted 27 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out the technical action grabbing my attention:
- 1-month outperformance vs. Energy Select Sector SPDR ETF (+3.8% vs. XLE)
Outperformance is important for leading stocks.
Alliance Resource Partners Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Alliance Resource Partners has had double-digit sales growth and strong profits. Take a look:
- 1-year sales growth rate (+18.2%)
- Profit margin (+11.0%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, ARLP has become a top-rated stock at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
ARLP has a lot of qualities that are attracting Big Money. It’s made the Top 20 report five times this year, with its first appearance on 05/03/2022…and gaining 42.3% since. The blue bars below show when Alliance Resource Partners was a top pick over the last year:
It’s been a top stock in the energy sector according to the MAPsignals process. I wouldn’t be surprised if ARLP makes additional appearances in the years to come. Let’s tie this all together.
Alliance Resource Partners Price Prediction
The Alliance Resource Partners rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend yield of 6.3%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in ARLP at the time of publication.
Learn more about the MAPsignals process here.