Celebrations may be in order for Ramaco Resources, Inc. (NASDAQ:METC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 18% to US$11.87 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Ramaco Resources' three analysts is for revenues of US$924m in 2025, which would reflect a huge 32% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 276% to US$2.48. Prior to this update, the analysts had been forecasting revenues of US$838m and earnings per share (EPS) of US$2.43 in 2025. The forecasts seem more optimistic now, with a substantial gain in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for Ramaco Resources

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$19.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ramaco Resources' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Ramaco Resources'historical trends, as the 25% annualised revenue growth to the end of 2025 is roughly in line with the 31% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.4% annually. So although Ramaco Resources is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Ramaco Resources.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ramaco Resources analysts - going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.