Agnico Eagle Mines (AEM) Gains As Market Dips: What You Should Know

·3 min read

In the latest trading session, Agnico Eagle Mines (AEM) closed at $48.17, marking a +0.65% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.7%. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.

Coming into today, shares of the gold mining company had lost 6.23% in the past month. In that same time, the Basic Materials sector lost 4.08%, while the S&P 500 lost 5.06%.

Wall Street will be looking for positivity from Agnico Eagle Mines as it approaches its next earnings report date. This is expected to be April 27, 2023. In that report, analysts expect Agnico Eagle Mines to post earnings of $0.39 per share. This would mark a year-over-year decline of 36.07%. Our most recent consensus estimate is calling for quarterly revenue of $1.3 billion, down 1.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.76 per share and revenue of $6 billion. These totals would mark changes of -23.48% and +4.58%, respectively, from last 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 20.43% lower within the past month. Agnico Eagle Mines is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Agnico Eagle Mines is holding a Forward P/E ratio of 27.19. This represents a premium compared to its industry's average Forward P/E of 15.89.

Also, we should mention that AEM has a PEG ratio of 27.19. 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 Mining - Gold was holding an average PEG ratio of 3.11 at yesterday's closing price.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.

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