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Agnico Eagle Mines (AEM) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Agnico Eagle Mines (AEM - Free Report) closed at $105.48, marking a -0.32% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.08%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.

The the stock of gold mining company has risen by 8.73% in the past month, leading the Basic Materials sector's loss of 1.64% and the S&P 500's loss of 8.26%.

Investors will be eagerly watching for the performance of Agnico Eagle Mines in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.02, reflecting a 34.21% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 22.4% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.62 per share and a revenue of $9.22 billion, representing changes of +9.22% and +11.3%, respectively, from the prior year.

Any recent changes to analyst estimates for Agnico Eagle Mines should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 1.96% lower. At present, Agnico Eagle Mines boasts a Zacks Rank of #3 (Hold).

Investors should also note Agnico Eagle Mines's current valuation metrics, including its Forward P/E ratio of 22.92. This denotes a premium relative to the industry's average Forward P/E of 13.41.

It is also worth noting that AEM currently has a PEG ratio of 0.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AEM's industry had an average PEG ratio of 0.98 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 161, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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