Agnico Eagle Mines (AEM) closed at $176.75 in the latest trading session, marking a +2.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%. At the same time, the Dow added 1.73%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the gold mining company had lost 9.57% lagged the Basic Materials sector's gain of 3.22% and the S&P 500's gain of 4.59%.
The investment community will be paying close attention to the earnings performance of Agnico Eagle Mines in its upcoming release. The company's upcoming EPS is projected at $3.14, signifying a 61.86% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.94 billion, indicating a 39.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $13.18 per share and a revenue of $16.6 billion, demonstrating changes of +59.18% and +39.4%, respectively, from the preceding year.
Any recent changes to analyst estimates for Agnico Eagle Mines should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. At present, Agnico Eagle Mines boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Agnico Eagle Mines currently has a Forward P/E ratio of 13.02. This valuation marks a premium compared to its industry average Forward P/E of 9.37.
One should further note that AEM currently holds a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Gold industry currently had an average PEG ratio of 1 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).