Agnico Eagle Mines (AEM) ended the recent trading session at $196.68, demonstrating a -2.91% change from the preceding day's closing price. This change lagged the S&P 500's 0.59% loss on the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The gold mining company's shares have seen an increase of 9.39% over the last month, surpassing the Basic Materials sector's gain of 2.83% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of Agnico Eagle Mines in its upcoming release. The company is forecasted to report an EPS of $2.45, showcasing a 13.43% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $3.53 billion, reflecting a 15.49% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.58 per share and revenue of $15.09 billion, which would represent changes of +39.86% and +26.72%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Agnico Eagle Mines. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% lower. Agnico Eagle Mines presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Agnico Eagle Mines is presently trading at a Forward P/E ratio of 17.5. Its industry sports an average Forward P/E of 13.29, so one might conclude that Agnico Eagle Mines is trading at a premium comparatively.
Meanwhile, AEM's PEG ratio is currently 2.51. 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. As of the close of trade yesterday, the Mining - Gold industry held an average PEG ratio of 0.98.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 14% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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).