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Agnico Eagle Mines (AEM) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest trading session, Agnico Eagle Mines (AEM - Free Report) closed at $78.30, marking a -0.9% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq lost 0.3%.

The gold mining company's shares have seen an increase of 5.33% over the last month, surpassing the Basic Materials sector's gain of 0.19% and the S&P 500's gain of 3.64%.

Market participants will be closely following the financial results of Agnico Eagle Mines in its upcoming release. It is anticipated that the company will report an EPS of $0.90, marking a 104.55% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.83 billion, indicating a 11.17% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.65 per share and revenue of $7.9 billion, which would represent changes of +63.68% and +19.23%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Agnico Eagle Mines. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Agnico Eagle Mines possesses a Zacks Rank of #3 (Hold).

Investors should also note Agnico Eagle Mines's current valuation metrics, including its Forward P/E ratio of 21.67. Its industry sports an average Forward P/E of 15.45, so one might conclude that Agnico Eagle Mines is trading at a premium comparatively.

Investors should also note that AEM has a PEG ratio of 0.77 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Mining - Gold industry stood at 0.77 at the close of the market yesterday.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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