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Agnico Eagle Mines and Brunswick have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL –October 30, 2024 – Zacks Equity Research shares Agnico Eagle Mines (AEG - Free Report) , as the Bull of the Day and Brunswick (BC - Free Report) , as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intercontinental Exchange Inc. (ICE - Free Report) and Roblox Corp. (RBLX - Free Report) .
Although it hasn’t received the airtime it deserves, gold prices have been rocketing higher this year. With more new record highs this week, gold has outperformed the S&P 500 by a significant margin year-to-date and since the start of 2023. Not surprisingly, gold miner stocks like Agnico Eagle Mines have also performed well this year.
Agnico Eagle Mines has everything a gold investor could ask for, including a rock-solid balance sheet, strong stock price momentum, huge earnings growth forecasts and a reasonable valuation. Furthermore, the stock boasts a top Zacks Rank, significantly increasing the odds of a further near-term rally.
Powerful Earnings Revision Trend in AEG
As the price of gold rallies, gold mining stocks enjoy immediate expansion in their margins, Agnico Eagle Mines included. Today, AEG has a Zacks Rank #1 (Strong Buy) rating, reflected by significant revisions higher to its earnings estimates.
Analysts have nearly unanimously upgraded earnings forecasts over the last two months, with FY25 earnings estimates jumping by a hefty 23.4% over the last 60 days. FY24 earnings estimates have also been revised higher by 9.9% and are projected to climb 79.8% YoY to $4.01 per share. Over the next three to five years EPS are expected to grow at an impressive 28.2% annually.
It is also worth noting that the Mining – Gold Industry currently sits in the Top 4% (9 out of 251) of the Zacks Industry Rank, and that the Zacks Earnings ESP is projecting the next earnings period to be analysts estimates by 5.82%.
AEG Stock Technical Setup
Rounding the compelling investment opportunity in Agnico Eagle Mines stock is a technical trading setup. Over the last week or so, the price action has been forming a bull flag from which investors can easily measure a trade.
If the stock can trade above the $88.75 level, it would signal a technical breakout. Alternatively, if the stock loses the $86 level of support, it may be worth waiting for another opportunity.
Should Investors Buy Agnico Eagle Mines Shares?
Agnico Eagle Mines is currently trading at a one year forward earnings multiple 0f 21.6x, which is below the broad market average and well below its 10-year median of 43x. Additionally, with earnings expected to grow 28.2% annually, AEM has an attractive PEG ratio of 0.77, indicating a discount based on the metric.
For investors seeking exposure to the gold market, Agnico Eagle Mines is a powerful way to express the trade. AEG has a reasonable valuation, top Zacks Rank and even pays a 1.8% dividend.
Brunswick is a leading global manufacturer and marketer of recreational marine products, known for its portfolio of well-regarded brands in boating, engines, and marine technology. Its products range from boats and marine engines to advanced navigation systems, catering to both recreational and professional boating enthusiasts.
While Brunswick remains a leader in its respective industry, the boating industry is not expected to do well in the near future, with sales and earnings projected to stagnate. Reflecting this reality, Brunswick has a Zacks Rank #5 (Strong Sell) rating, while its stock and the sector more broadly have performed poorly year-to-date.
Further increasing the risks of owning the stock are a valuation that remains well above its historical averages. Thus, based on this unfavorable setup, I think investors should avoid Brunswick stock and seek other opportunities until the data improves.
Brunswick Earnings Estimates Crater
The recreational boating industry is not expected to do well over the next year, as it seems years of purchases were brought forward following the post-Covid boom. Current quarter earnings estimates have been revised lower by 41.3% and are expected to fall 62.7% YoY, while FY24 estimates have declined by 6.7% and are projected to fall 44.2% YoY.
Brunswick’s Earnings ESP is especially concerning, with the indicator forecasting earnings at the next quarterly report to miss estimates by a whopping 45.56%. Over the last four earnings reports, BC has missed earnings estimates by an average of 4.88%.
Yet BC Still has a Premium Valuation
Even with the falling stock price and poor outlook, Brunswick still has a premium valuation. Today, it is trading at a one year forward earnings multiple of 18.2x, which is below the market average, but well above its 10-year median of 13.1x.
With both sales and earnings expected to fall this year, a premium valuation like this increases the downside risk of owning the stock.
Should Investors Buy Brunswick Shares?
Given the significant downward revisions in earnings estimates and a high valuation relative to its historical averages, Brunswick presents considerable risk to investors. The post-COVID demand surge appears to have pulled forward boat purchases, leaving the industry with stagnant growth prospects in the near term. Brunswick’s Zacks Rank #5 (Strong Sell) underscores this challenging outlook, with earnings expected to decline substantially year-over-year.
Until industry fundamentals show signs of recovery and Brunswick’s valuation aligns with its growth outlook, it may be wise for investors to seek alternative opportunities in more resilient sectors.
Additional content:
2 Large-Cap Stocks to Buy Ahead of Q3 Earnings Beats
The third-quarter 2024 earnings season is advancing in top gear. By the end of this week, we will cross the halfway mark of Wall Street’s benchmark S&P 500 Index earnings release. This week is the most crucial for this reporting cycle. Five “Magnificent 7” stocks are set to release their quarterly financial numbers.
Aside from these five behemoths, a long-list of big companies will report earnings results this week, too. Earnings reports of two such stocks that market participants should closely watch are — Intercontinental Exchange Inc. and Roblox Corp. These two stocks have double-digit price upside potential for the short term.
Third-Quarter Earnings Season So Far
As of Oct 25, 182 companies of the broad-market index — the S&P 500 — have reported their quarterly financial numbers. Total earnings of these companies are down 2.1% year over year on 4.5% higher revenues, with 75.8% beating earnings per share (EPS) estimates and 58.8% beating revenue estimates.
Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 1.5% from the same period last year on 5% higher revenues. This follows 10.2% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
2 Stocks to Buy Ahead of Earnings Results on Thursday
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intercontinental Exchange
Intercontinental Exchange has been benefiting from its compelling product and service portfolio, the broad range of risk management services and strength in global data services. Continued strength in ICE’s energy franchise and improving recurring market data revenues are likely to sustain growth.
Strategic buyouts help Intercontinental Exchange achieve cost synergies that are in sync with its aim of generating long-term value for shareholders. ICE is well-poised for growth due to accelerated digitization in the U.S. residential mortgage industry. ICE has an Earnings ESP of +0.48%. The company will report on Oct 31, before the opening bell.
Impressive Earnings Estimate Revisions for ICE Stock
For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $2.35 billion, suggesting an improvement of 17.2% year over year and earnings per share of $1.55, indicating an increase of 6.2% year over year. The company pulled off positive earnings surprises in three of the last four reported quarters and matched estimates in the other, delivering an average beat of 2.4%.
Moreover, Intercontinental Exchange has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 16.7% and 9.1%, respectively, for revenues and EPS in 2024. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 6.2% and 11.6%, respectively.
Strong Upside Left for ICE Shares
The average short-term price target of brokerage firms represents an increase of 10.7% from the last closing price of $166.44. The brokerage target price is currently in the range of $162-$200. This indicates a maximum upside of 20.2% and a maximum downside of just 2.7%.
Roblox Corp.
Roblox develops and operates an online entertainment platform. RBLX offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that lets developers and creators build, publish and operate 3D experiences and other content.
RBLX also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. RBLX has an Earnings ESP of +14.68%. The company will report on Oct 31, before the opening bell.
RBLX Stock’s Earnings Estimate Revisions on the Rise
For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $1.02 billion, suggesting an improvement of 22% year over year and earnings per share of -$0.38, indicating an improvement of 15.6% year over year. The company delivered positive earnings surprises in the last four reported quarters with an average beat of 13.7%.
Moreover, Roblox has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 20.2% and 16%, respectively, for revenues and EPS in 2024. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 19.2% and 5.4%, respectively.
Solid Upside Left for ICE Shares
The average short-term price target of brokerage firms represents an increase of 11.7% from the last closing price of $42.30. The brokerage target price is currently in the range of $60-$29. This indicates a maximum upside of 41.8% and a maximum downside of 31.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Agnico Eagle Mines and Brunswick have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL –October 30, 2024 – Zacks Equity Research shares Agnico Eagle Mines (AEG - Free Report) , as the Bull of the Day and Brunswick (BC - Free Report) , as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Intercontinental Exchange Inc. (ICE - Free Report) and Roblox Corp. (RBLX - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
Although it hasn’t received the airtime it deserves, gold prices have been rocketing higher this year. With more new record highs this week, gold has outperformed the S&P 500 by a significant margin year-to-date and since the start of 2023. Not surprisingly, gold miner stocks like Agnico Eagle Mines have also performed well this year.
Agnico Eagle Mines has everything a gold investor could ask for, including a rock-solid balance sheet, strong stock price momentum, huge earnings growth forecasts and a reasonable valuation. Furthermore, the stock boasts a top Zacks Rank, significantly increasing the odds of a further near-term rally.
Powerful Earnings Revision Trend in AEG
As the price of gold rallies, gold mining stocks enjoy immediate expansion in their margins, Agnico Eagle Mines included. Today, AEG has a Zacks Rank #1 (Strong Buy) rating, reflected by significant revisions higher to its earnings estimates.
Analysts have nearly unanimously upgraded earnings forecasts over the last two months, with FY25 earnings estimates jumping by a hefty 23.4% over the last 60 days. FY24 earnings estimates have also been revised higher by 9.9% and are projected to climb 79.8% YoY to $4.01 per share. Over the next three to five years EPS are expected to grow at an impressive 28.2% annually.
It is also worth noting that the Mining – Gold Industry currently sits in the Top 4% (9 out of 251) of the Zacks Industry Rank, and that the Zacks Earnings ESP is projecting the next earnings period to be analysts estimates by 5.82%.
AEG Stock Technical Setup
Rounding the compelling investment opportunity in Agnico Eagle Mines stock is a technical trading setup. Over the last week or so, the price action has been forming a bull flag from which investors can easily measure a trade.
If the stock can trade above the $88.75 level, it would signal a technical breakout. Alternatively, if the stock loses the $86 level of support, it may be worth waiting for another opportunity.
Should Investors Buy Agnico Eagle Mines Shares?
Agnico Eagle Mines is currently trading at a one year forward earnings multiple 0f 21.6x, which is below the broad market average and well below its 10-year median of 43x. Additionally, with earnings expected to grow 28.2% annually, AEM has an attractive PEG ratio of 0.77, indicating a discount based on the metric.
For investors seeking exposure to the gold market, Agnico Eagle Mines is a powerful way to express the trade. AEG has a reasonable valuation, top Zacks Rank and even pays a 1.8% dividend.
Bear of the Day:
Brunswick is a leading global manufacturer and marketer of recreational marine products, known for its portfolio of well-regarded brands in boating, engines, and marine technology. Its products range from boats and marine engines to advanced navigation systems, catering to both recreational and professional boating enthusiasts.
While Brunswick remains a leader in its respective industry, the boating industry is not expected to do well in the near future, with sales and earnings projected to stagnate. Reflecting this reality, Brunswick has a Zacks Rank #5 (Strong Sell) rating, while its stock and the sector more broadly have performed poorly year-to-date.
Further increasing the risks of owning the stock are a valuation that remains well above its historical averages. Thus, based on this unfavorable setup, I think investors should avoid Brunswick stock and seek other opportunities until the data improves.
Brunswick Earnings Estimates Crater
The recreational boating industry is not expected to do well over the next year, as it seems years of purchases were brought forward following the post-Covid boom. Current quarter earnings estimates have been revised lower by 41.3% and are expected to fall 62.7% YoY, while FY24 estimates have declined by 6.7% and are projected to fall 44.2% YoY.
Brunswick’s Earnings ESP is especially concerning, with the indicator forecasting earnings at the next quarterly report to miss estimates by a whopping 45.56%. Over the last four earnings reports, BC has missed earnings estimates by an average of 4.88%.
Yet BC Still has a Premium Valuation
Even with the falling stock price and poor outlook, Brunswick still has a premium valuation. Today, it is trading at a one year forward earnings multiple of 18.2x, which is below the market average, but well above its 10-year median of 13.1x.
With both sales and earnings expected to fall this year, a premium valuation like this increases the downside risk of owning the stock.
Should Investors Buy Brunswick Shares?
Given the significant downward revisions in earnings estimates and a high valuation relative to its historical averages, Brunswick presents considerable risk to investors. The post-COVID demand surge appears to have pulled forward boat purchases, leaving the industry with stagnant growth prospects in the near term. Brunswick’s Zacks Rank #5 (Strong Sell) underscores this challenging outlook, with earnings expected to decline substantially year-over-year.
Until industry fundamentals show signs of recovery and Brunswick’s valuation aligns with its growth outlook, it may be wise for investors to seek alternative opportunities in more resilient sectors.
Additional content:
2 Large-Cap Stocks to Buy Ahead of Q3 Earnings Beats
The third-quarter 2024 earnings season is advancing in top gear. By the end of this week, we will cross the halfway mark of Wall Street’s benchmark S&P 500 Index earnings release. This week is the most crucial for this reporting cycle. Five “Magnificent 7” stocks are set to release their quarterly financial numbers.
Aside from these five behemoths, a long-list of big companies will report earnings results this week, too. Earnings reports of two such stocks that market participants should closely watch are — Intercontinental Exchange Inc. and Roblox Corp. These two stocks have double-digit price upside potential for the short term.
Third-Quarter Earnings Season So Far
As of Oct 25, 182 companies of the broad-market index — the S&P 500 — have reported their quarterly financial numbers. Total earnings of these companies are down 2.1% year over year on 4.5% higher revenues, with 75.8% beating earnings per share (EPS) estimates and 58.8% beating revenue estimates.
Looking at the third quarter as a whole, total earnings for the S&P 500 Index are expected to be up 1.5% from the same period last year on 5% higher revenues. This follows 10.2% year-over-year EPS growth on 5.5% higher revenues in the previous quarter.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
2 Stocks to Buy Ahead of Earnings Results on Thursday
We have narrowed our search to two large-cap stocks set to report earnings results this month. Each of these stocks carries a Zacks Rank #2 (Buy) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 (Hold) or better (Rank #1 or 2) and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intercontinental Exchange
Intercontinental Exchange has been benefiting from its compelling product and service portfolio, the broad range of risk management services and strength in global data services. Continued strength in ICE’s energy franchise and improving recurring market data revenues are likely to sustain growth.
Strategic buyouts help Intercontinental Exchange achieve cost synergies that are in sync with its aim of generating long-term value for shareholders. ICE is well-poised for growth due to accelerated digitization in the U.S. residential mortgage industry. ICE has an Earnings ESP of +0.48%. The company will report on Oct 31, before the opening bell.
Impressive Earnings Estimate Revisions for ICE Stock
For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $2.35 billion, suggesting an improvement of 17.2% year over year and earnings per share of $1.55, indicating an increase of 6.2% year over year. The company pulled off positive earnings surprises in three of the last four reported quarters and matched estimates in the other, delivering an average beat of 2.4%.
Moreover, Intercontinental Exchange has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 16.7% and 9.1%, respectively, for revenues and EPS in 2024. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 6.2% and 11.6%, respectively.
Strong Upside Left for ICE Shares
The average short-term price target of brokerage firms represents an increase of 10.7% from the last closing price of $166.44. The brokerage target price is currently in the range of $162-$200. This indicates a maximum upside of 20.2% and a maximum downside of just 2.7%.
Roblox Corp.
Roblox develops and operates an online entertainment platform. RBLX offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset that lets developers and creators build, publish and operate 3D experiences and other content.
RBLX also provides Roblox Cloud, a solution that provides services and infrastructure to power the human co-experience platform. RBLX has an Earnings ESP of +14.68%. The company will report on Oct 31, before the opening bell.
RBLX Stock’s Earnings Estimate Revisions on the Rise
For third-quarter 2024, the Zacks Consensus Estimate currently shows revenues of $1.02 billion, suggesting an improvement of 22% year over year and earnings per share of -$0.38, indicating an improvement of 15.6% year over year. The company delivered positive earnings surprises in the last four reported quarters with an average beat of 13.7%.
Moreover, Roblox has witnessed positive earnings estimate revisions for 2024 in the last seven days. At present, the Zacks Consensus Estimate indicates a year-over-year increase of 20.2% and 16%, respectively, for revenues and EPS in 2024. The current Zacks Consensus Estimate for 2025 revenues and EPS reflects an upside of 19.2% and 5.4%, respectively.
Solid Upside Left for ICE Shares
The average short-term price target of brokerage firms represents an increase of 11.7% from the last closing price of $42.30. The brokerage target price is currently in the range of $60-$29. This indicates a maximum upside of 41.8% and a maximum downside of 31.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.