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Bull of the Day: Agnico Eagle Mines (AEM) (Revised)
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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 ((AEM - Free Report) ) 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.
Image Source: TradingView
Powerful Earnings Revision Trend in AEM
As the price of gold rallies, gold mining stocks enjoy immediate expansion in their margins, Agnico Eagle Mines included. Today, AEM 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%.
Image Source: Zacks Investment Research
AEM 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.
Image Source: TradingView
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. AEM has a reasonable valuation, top Zacks Rank and even pays a 1.8% dividend.
Disclaimer: This article has been revised and republished to correct an error
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Bull of the Day: Agnico Eagle Mines (AEM) (Revised)
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 ((AEM - Free Report) ) 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.
Image Source: TradingView
Powerful Earnings Revision Trend in AEM
As the price of gold rallies, gold mining stocks enjoy immediate expansion in their margins, Agnico Eagle Mines included. Today, AEM 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%.
Image Source: Zacks Investment Research
AEM 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.
Image Source: TradingView
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. AEM has a reasonable valuation, top Zacks Rank and even pays a 1.8% dividend.
Disclaimer: This article has been revised and republished to correct an error