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Agnico Eagle Mines Limited (AEM) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Agnico Eagle Mines (AEM - Free Report) ? Shares have been on the move with the stock up 16.7% over the past month. The stock hit a new 52-week high of $179.2 in the previous session. Agnico has gained 128.5% since the start of the year compared to the 26.7% move for the Zacks Basic Materials sector and the 131.8% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2025, Agnico reported EPS of $1.94 versus consensus estimate of $1.83 while it beat the consensus revenue estimate by 10.3%.
For the current fiscal year, Agnico is expected to post earnings of $7.16 per share on $10.84 in revenues. This represents a 69.27% change in EPS on a 30.81% change in revenues. For the next fiscal year, the company is expected to earn $7.62 per share on $11.29 in revenues. This represents a year-over-year change of 6.36% and 4.19%, respectively.
Valuation Metrics
While Agnico has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Agnico has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 24.7X versus its peer group's average of 18.5X. Additionally, the stock has a PEG ratio of 1.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Agnico currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Agnico passes the test. Thus, it seems as though Agnico shares could have a bit more room to run in the near term.
How Does AEM Stack Up to the Competition?
Shares of AEM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC - Free Report) . KGC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 33.33%, and for the current fiscal year, KGC is expected to post earnings of $1.44 per share on revenue of $6.58 billion.
Shares of Kinross Gold Corporation have gained 19.8% over the past month, and currently trade at a forward P/E of 18.71X and a P/CF of 16.65X.
The Mining - Gold industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and KGC, even beyond their own solid fundamental situation.
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Agnico Eagle Mines Limited (AEM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Agnico Eagle Mines (AEM - Free Report) ? Shares have been on the move with the stock up 16.7% over the past month. The stock hit a new 52-week high of $179.2 in the previous session. Agnico has gained 128.5% since the start of the year compared to the 26.7% move for the Zacks Basic Materials sector and the 131.8% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 30, 2025, Agnico reported EPS of $1.94 versus consensus estimate of $1.83 while it beat the consensus revenue estimate by 10.3%.
For the current fiscal year, Agnico is expected to post earnings of $7.16 per share on $10.84 in revenues. This represents a 69.27% change in EPS on a 30.81% change in revenues. For the next fiscal year, the company is expected to earn $7.62 per share on $11.29 in revenues. This represents a year-over-year change of 6.36% and 4.19%, respectively.
Valuation Metrics
While Agnico has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Agnico has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 25X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.8X. On a trailing cash flow basis, the stock currently trades at 24.7X versus its peer group's average of 18.5X. Additionally, the stock has a PEG ratio of 1.19. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Agnico currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Agnico passes the test. Thus, it seems as though Agnico shares could have a bit more room to run in the near term.
How Does AEM Stack Up to the Competition?
Shares of AEM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC - Free Report) . KGC has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 33.33%, and for the current fiscal year, KGC is expected to post earnings of $1.44 per share on revenue of $6.58 billion.
Shares of Kinross Gold Corporation have gained 19.8% over the past month, and currently trade at a forward P/E of 18.71X and a P/CF of 16.65X.
The Mining - Gold industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and KGC, even beyond their own solid fundamental situation.