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Agnico Eagle Mines (AEM) Laps the Stock Market: Here's Why

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Agnico Eagle Mines (AEM - Free Report) ended the recent trading session at $69.93, demonstrating a +0.19% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.1% gain on the day. Elsewhere, the Dow saw a downswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.28%.

The the stock of gold mining company has risen by 9.4% in the past month, leading the Basic Materials sector's loss of 0.98% and the S&P 500's gain of 4.08%.

The investment community will be paying close attention to the earnings performance of Agnico Eagle Mines in its upcoming release. The company is slated to reveal its earnings on July 31, 2024. On that day, Agnico Eagle Mines is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 24.62%. At the same time, our most recent consensus estimate is projecting a revenue of $1.72 billion, reflecting a 0.05% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.16 per share and revenue of $7.48 billion. These totals would mark changes of +41.7% and +12.88%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Agnico Eagle Mines. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% lower. Agnico Eagle Mines is currently a Zacks Rank #3 (Hold).

In the context of valuation, Agnico Eagle Mines is at present trading with a Forward P/E ratio of 22.1. This signifies a premium in comparison to the average Forward P/E of 16.06 for its industry.

One should further note that AEM currently holds a PEG ratio of 0.77. 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 0.75 at the close of the market yesterday.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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