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Agnico Eagle Mines (AEM) Gains As Market Dips: What You Should Know

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The latest trading session saw Agnico Eagle Mines (AEM - Free Report) ending at $102.68, denoting a +1.61% adjustment from its last day's close. This change outpaced the S&P 500's 0.91% loss on the day. Meanwhile, the Dow experienced a drop of 1.5%, and the technology-dominated Nasdaq saw a decrease of 1.96%.

Shares of the gold mining company have appreciated by 1.51% over the course of the past month, outperforming the Basic Materials sector's loss of 3.32% and the S&P 500's loss of 7.38%.

The upcoming earnings release of Agnico Eagle Mines will be of great interest to investors. The company is forecasted to report an EPS of $1.02, showcasing a 34.21% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.24 billion, up 22.4% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.62 per share and revenue of $9.22 billion, indicating changes of +9.22% and +11.3%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Agnico Eagle Mines. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.69% lower. As of now, Agnico Eagle Mines holds a Zacks Rank of #3 (Hold).

In the context of valuation, Agnico Eagle Mines is at present trading with a Forward P/E ratio of 21.89. This expresses a premium compared to the average Forward P/E of 13.06 of its industry.

It is also worth noting that AEM currently has a PEG ratio of 0.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 0.86.

The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 38% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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