Agnico Eagle Mines (AEM) closed at $175.16 in the latest trading session, marking a +2.76% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.69%.
The gold mining company's shares have seen an increase of 0.96% over the last month, not keeping up with the Basic Materials sector's gain of 5.72% and outstripping the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Agnico Eagle Mines in its upcoming earnings disclosure. In that report, analysts expect Agnico Eagle Mines to post earnings of $2.01 per share. This would mark year-over-year growth of 59.52%. At the same time, our most recent consensus estimate is projecting a revenue of $3 billion, reflecting a 35.01% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.87 per share and a revenue of $11.49 billion, representing changes of +86.05% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Agnico Eagle Mines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 3.02% higher within the past month. Agnico Eagle Mines is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Agnico Eagle Mines is currently being traded at a Forward P/E ratio of 17.57. This signifies a premium in comparison to the average Forward P/E of 11.89 for its industry.
Also, we should mention that AEM has a PEG ratio of 0.5. 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. The Mining - Gold was holding an average PEG ratio of 0.38 at yesterday's closing price.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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