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Zacks Investment Ideas feature highlights: Eagle Mines and Siemens

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For Immediate Release

Chicago, IL – June 7, 2024 – Today, Zacks Investment Ideas feature highlights Agnico Eagle Mines (AEM - Free Report) and Siemens (SIEGY - Free Report) .

2 Stocks to Buy After ECB & Canada Lower Interest Rates

Optimistically, the European Central Bank (ECB) and Bank of Canada (BOC) cut interest rates this week somewhat ensuring large economies may be on the path to easing inflation and beating the U.S. to the punch.

Canada is particularly receptive to the idea of a soft landing becoming the most recent G7 nation to reduce borrowing costs for consumers with the BOC cutting its benchmark rate by 25 basis points to 4.75%.

Notably, the BOC sees more easing ahead while the ECB has remained cautious despite Euro Zone rates being cut by 25 basis points as well to 3.75%. This comes as the Federal Reserve has kept rates in the United States at 5.25%-5.5% with the Bank of England at 5.25%.

Presumably, investors may be eyeing stocks that can benefit more directly from what will likely be a more favorable operating environment for companies in Canada and Europe. With that being said, here are two Intriguing stocks to consider in this regard.

Agnico Eagle Mines

Zacks Rank #1 (Strong Buy)

Somewhat of a double-edged sword for investors, gold is often a viable inflationary hedge and Toronto-based mining company Agnico Eagle Mines is a gold producer that is seeing robust growth.

With spot gold prices still near historical and multi-year peaks of over $2,000 per troy ounce, it's also noteworthy that AEM offers a generous 2.42% annual dividend yield and the Zacks Mining-Gold Industry is currently in the top 6% of over 250 Zacks industries.

Siemens – European ADR

Zacks Rank #2 (Buy)

Headquartered in Germany, Siemens' bottom-line expansion is attractive as the world's largest supplier of products, systems, solutions, and services for industrial automation and building technology.

Siemens' valuation and dominance among European capital goods suppliers is very intriguing, especially considering the ECB's recent rate cuts could help improve the company's profitability.

To that point, SIEGY trades at an attractive 16.9X forward earnings multiple with EPS projected to increase 9% in fiscal 2024 and forecasted to expand another 13% in FY25 to $6.56 per share. Plus, SIEGY has a very respectable 1.91% annual dividend yield.

Bottom Line

Recent rate cuts by the ECB and BOC could certainly lead to a more favorable operating environment for many companies in Canada and Europe with Agnico Eagle Mines and Siemens being two stocks to keep an eye on respectively.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release.

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