What Makes Agnico Eagle (AEM) a Strong Sell?
Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Agnico Eagle Mines Limited (AEM), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #5 (Strong Sell) further confirms weakness in AEM.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen eight estimates moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from $1.22 a share a month ago to its current level of $1.04.
Also, for the current quarter, Agnico Eagle has seen six downward estimate revisions versus one revision in the opposite direction, dragging the consensus estimate down to 11 cents a share from 14 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 11.3% in the past month.
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.
If you are still interested in the Mining – Gold industry, you may instead consider some better-ranked stocks including Banro Corporation (BAA) and Lake Shore Gold Corp. (LSG). Both these stocks hold a Zacks Rank #2 (Buy) and may be better selections at this time. Moreover, if you are interested in the Basic Materials sector, you may consider Innospec Inc. (IOSP) which carries a Zacks Rank #1 (Strong Buy).
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AGNICO EAGLE MINES LTD (AEM): Free Stock Analysis Report
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