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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 3.7% over the past month. The stock hit a new 52-week high of $86.64 in the previous session. Agnico Eagle Mines has gained 57.1% since the start of the year compared to the 7.2% move for the Zacks Basic Materials sector and the 37.2% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Agnico reported EPS of $1.07 versus consensus estimate of $0.93 while it beat the consensus revenue estimate by 20.81%.
For the current fiscal year, Agnico is expected to post earnings of $3.88 per share on $7.98 billion in revenues. This represents a 73.99% change in EPS on a 20.37% change in revenues. For the next fiscal year, the company is expected to earn $4.12 per share on $8.2 billion in revenues. This represents a year-over-year change of 6.11% and 2.82%, respectively.
Valuation Metrics
Agnico may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to 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 B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 16.6X versus its peer group's average of 10.8X. Additionally, the stock has a PEG ratio of 0.79. 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 #1 (Strong Buy) thanks to rising earnings estimates.
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 fits the bill. Thus, it seems as though Agnico shares could have potential in the weeks and months to come.
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 Centerra Gold Inc. (CGAU - Free Report) . CGAU has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Centerra Gold Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, CGAU is expected to post earnings of $0.84 per share on revenue of $1.23 billion.
Shares of Centerra Gold Inc. have gained 8.1% over the past month, and currently trade at a forward P/E of 8.92X and a P/CF of 11.51X.
The Mining - Gold industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and CGAU, 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 3.7% over the past month. The stock hit a new 52-week high of $86.64 in the previous session. Agnico Eagle Mines has gained 57.1% since the start of the year compared to the 7.2% move for the Zacks Basic Materials sector and the 37.2% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2024, Agnico reported EPS of $1.07 versus consensus estimate of $0.93 while it beat the consensus revenue estimate by 20.81%.
For the current fiscal year, Agnico is expected to post earnings of $3.88 per share on $7.98 billion in revenues. This represents a 73.99% change in EPS on a 20.37% change in revenues. For the next fiscal year, the company is expected to earn $4.12 per share on $8.2 billion in revenues. This represents a year-over-year change of 6.11% and 2.82%, respectively.
Valuation Metrics
Agnico may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to 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 B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 22.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 16.6X versus its peer group's average of 10.8X. Additionally, the stock has a PEG ratio of 0.79. 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 #1 (Strong Buy) thanks to rising earnings estimates.
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 fits the bill. Thus, it seems as though Agnico shares could have potential in the weeks and months to come.
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 Centerra Gold Inc. (CGAU - Free Report) . CGAU has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Centerra Gold Inc. beat our consensus estimate by 43.75%, and for the current fiscal year, CGAU is expected to post earnings of $0.84 per share on revenue of $1.23 billion.
Shares of Centerra Gold Inc. have gained 8.1% over the past month, and currently trade at a forward P/E of 8.92X and a P/CF of 11.51X.
The Mining - Gold industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and CGAU, even beyond their own solid fundamental situation.