PCX Patriot Coal Corp.

For Immediate Release

Chicago, IL – January 17, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Alpha Natural Resources (ANR), Patriot Coal (PCX), CSX Corporation (CSX), Norfolk Southern (NSC) and Union Pacific (UNP).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Monday’s Analyst Blog:

Coal Worries Railroads Again

The coal projection has once again stirred up trouble for the railroads. After being hit by lower coal shipment by producers Alpha Natural Resources (ANR), among others, in the second half of the fiscal 2011, rail stocks plunged on the news of another player in U.S. coal biz, Patriot Coal (PCX) closing a few of its operation due to the softening of coal demand.

The ensuing negative market reaction resulted in declines in share prices on Friday. Major players like CSX Corporation (CSX) and Norfolk Southern (NSC) fell 3.3% and 2.2%, respectively, followed by Union Pacific (UNP) which dropped 1.2%.

Over the past year, rail companies have shown significant growth in terms of their coal shipments that represents approximately one-third of their total freight businesses. The declines in Australian markets last year, after the floods tempered mining activities, resulted in substantial momentum in the U.S. coal market. Additionally, increasing coal demand from Asian countries like China and India for steel manufacturing also uplifted the position of the U.S. as global coal supplier. As a result, railroads were optimistic on the long-term demand for coal given the emerging position of U.S. as the coal export hub.

However, the current global volatility that affected mining activities, the sudden drop in demand from the Asian markets sighting problems over quality along with harsh weather conditions in the Pacific region have resulted in a major setback for coal shipments across the globe. Additionally, the recovery of the Australian mine from last year’s flood also poses a threat to the U.S. coal exports. On the domestic front, lower natural gas prices and seasonality impacts have also dampened coal demand and the trend is expected to continue in the near term.

We are yet to see changes in predictions by railroads like CSX and Norfolk in the upcoming quarterly and full year 2011 results. Both companies still stick to their investment plans and export projections. In fact, for the full year, CSX has raised its capital plan from $2 billion to $2.2 billion and Norfolk has set a higher export goal based on an approximately 5% increase in global steel production.

What lies ahead for the railroad companies in the backdrop of a fluctuating economy and raised expectations, is to be watched out for. Further, several legal battles on railroad safety will also pose near-term concerns for an industry that has started to rebound on growing demand for rail freight services.

We are currently maintaining a long-term Neutral recommendation on Norfolk, CSX Corp. and Union Pacific with a Zacks short-term (1-3 months) #3 (Hold) rating on Norfolk and CSX. Union Pacific retains a short-term Zacks #2 (Buy) rating.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

 
ALPHA NATRL RES (ANR): Free Stock Analysis Report
 
CSX CORP (CSX): Free Stock Analysis Report
 
NORFOLK SOUTHRN (NSC): Free Stock Analysis Report
 
PATRIOT COAL CP (PCX): Free Stock Analysis Report
 
UNION PAC CORP (UNP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.