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Agnico Eagle Mines (AEM) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest market close, Agnico Eagle Mines (AEM - Free Report) reached $101.05, with a +0.48% movement compared to the previous day. This change lagged the S&P 500's 0.49% gain on the day. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.

The the stock of gold mining company has risen by 2.24% in the past month, leading the Basic Materials sector's loss of 2.81% and the S&P 500's loss of 8.15%.

Market participants will be closely following the financial results of Agnico Eagle Mines in its upcoming release. The company's upcoming EPS is projected at $1.02, signifying a 34.21% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.24 billion, indicating a 22.4% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $4.62 per share and a revenue of $9.22 billion, demonstrating changes of +9.22% and +11.3%, respectively, from the preceding year.

Investors should also note any recent changes 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.71% lower. Right now, Agnico Eagle Mines possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Agnico Eagle Mines is currently being traded at a Forward P/E ratio of 21.79. This valuation marks a premium compared to its industry's average Forward P/E of 12.77.

We can also see that AEM currently has a PEG ratio of 0.69. 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. AEM's industry had an average PEG ratio of 0.86 as of yesterday's close.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 42% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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