Shares of Agnico Eagle Mines (AEM) have been strong performers lately, with the stock up 15.4% over the past month. The stock hit a new 52-week high of $209.58 in the previous session. Agnico has gained 23.3% since the start of the year compared to the 45.7% move for the Zacks Basic Materials sector and the 192% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2025, Agnico reported EPS of $2.16 versus consensus estimate of $1.76 while it beat the consensus revenue estimate by 12.19%.
For the current fiscal year, Agnico is expected to post earnings of $10.16 per share on $11.49 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $8.6 per share on $12.79 in revenues. This represents a year-over-year change of 28.17% and 11.34%, respectively.
Valuation Metrics
Though Agnico has recently hit a 52-week high, what is next for Agnico? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Agnico has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 13.7X. On a trailing cash flow basis, the stock currently trades at 28.9X versus its peer group's average of 22.5X. Additionally, the stock has a PEG ratio of 0.61. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Agnico currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Agnico meets the list of requirements. Thus, it seems as though Agnico shares could have a bit more room to run in the near term.
How Does AEM Stack Up to the Competition?
Shares of AEM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC). KGC has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 12.82%, and for the current fiscal year, KGC is expected to post earnings of $2.42 per share on revenue of $6.93 billion.
Shares of Kinross Gold Corporation have gained 24.1% over the past month, and currently trade at a forward P/E of 15.09X and a P/CF of 22.63X.
The Mining - Gold industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and KGC, even beyond their own solid fundamental situation.
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Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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