Agnico Eagle Mines (AEM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Agnico Eagle Mines (AEM) closed at $57.20, marking a +1.27% move from the previous day. This move outpaced the S&P 500's daily gain of 1.05%. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq gained 9.7%.
Heading into today, shares of the gold mining company had gained 5.45% over the past month, lagging the Basic Materials sector's gain of 11.42% and the S&P 500's gain of 6.27% in that time.
Agnico Eagle Mines will be looking to display strength as it nears its next earnings release, which is expected to be February 16, 2023. The company is expected to report EPS of $0.39, down 15.22% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.42 billion, up 49.97% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Agnico Eagle Mines. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Agnico Eagle Mines is currently a Zacks Rank #2 (Buy).
In terms of valuation, Agnico Eagle Mines is currently trading at a Forward P/E ratio of 26.9. Its industry sports an average Forward P/E of 21.58, so we one might conclude that Agnico Eagle Mines is trading at a premium comparatively.
Also, we should mention that AEM has a PEG ratio of 26.9. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. AEM's industry had an average PEG ratio of 3.78 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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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