Last Updated: 16 Sep 2024
Executive Summary
American Resources Corp Class A (AREC) is a supplier of raw materials for the global infrastructure market. The company has a market capitalization of $37.93 million and its latest stock price is $0.49. AREC has been facing financial challenges, with negative earnings and profitability metrics. However, analysts remain optimistic about the company's long-term prospects, with a consensus analyst target price of $4.08.
Company Overview
American Resources Corp is headquartered in Fishers, Indiana. The company supplies a range of raw materials, including aggregates, cement, and steel, to customers in the construction, infrastructure, and energy sectors. AREC operates primarily in the United States, but also has operations in Canada and Mexico.
Fundamental Analysis
AREC's financial performance has been weak in recent quarters. The company reported a net loss of $19.46 million for the fiscal year ended December 2023, and an EBITDA loss of $19.46 million. AREC's profitability metrics are also negative, with a profit margin of -2.36% and an operating margin of -1521.23%.
Despite the company's financial challenges, analysts remain optimistic about its long-term prospects. AREC has a strong market position in the raw materials sector, and the company is expected to benefit from increased demand for infrastructure investment in the coming years.
Technical Analysis
AREC's stock price has been trending down in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's technical indicators are also bearish, with the relative strength index (RSI) below 30.
Short Term Outlook
In the short term, AREC's stock price is likely to remain under pressure. The company's financial challenges are likely to continue to weigh on the stock price. However, if AREC can improve its financial performance, the stock price could rebound.
Long Term Outlook
In the long term, AREC's stock price is likely to be driven by the company's ability to execute its growth strategy. If AREC can successfully increase its market share and improve its profitability, the stock price could rise significantly.
Analyst Recommendations
The consensus analyst rating for AREC is "Buy." Three analysts have a "Buy" rating on the stock, while none have a "Strong Buy," "Hold," "Sell," or "Strong Sell" rating. The consensus analyst target price for AREC is $4.08, which represents a potential upside of over 700% from the current stock price.
