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Agnico Eagle Mines (AEM) Gains But Lags Market: What You Should Know

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In the latest market close, Agnico Eagle Mines (AEM - Free Report) reached $81.83, with a +0.66% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 1.7%. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 2.51%.

The gold mining company's shares have seen a decrease of 1.71% over the last month, not keeping up with the Basic Materials sector's gain of 1.1% and the S&P 500's gain of 1.27%.

The upcoming earnings release of Agnico Eagle Mines will be of great interest to investors. The company is predicted to post an EPS of $0.90, indicating a 104.55% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.83 billion, reflecting a 11.17% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.65 per share and revenue of $7.9 billion, indicating changes of +63.68% and +19.23%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Agnico Eagle Mines. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Agnico Eagle Mines holds a Zacks Rank of #3 (Hold).

Investors should also note Agnico Eagle Mines's current valuation metrics, including its Forward P/E ratio of 22.3. This valuation marks a premium compared to its industry's average Forward P/E of 16.15.

We can also see that AEM currently has a PEG ratio of 0.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Mining - Gold stocks are, on average, holding a PEG ratio of 0.66 based on yesterday's closing prices.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 137, positioning it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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