Agnico Eagle Mines (AEM) shares ended the last trading session 3.3% higher at $174.21. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 6.3% gain over the past four weeks.
The rise in AEM’s shares reflects a rally in gold prices on expectations of further interest rate cuts amid concerns over the labor markets, economic uncertainties and geopolitical tensions.
This gold mining company is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of +59.5%. Revenues are expected to be $3 billion, up 35% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Agnico, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on AEM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Agnico is a member of the Zacks Mining - Gold industry. One other stock in the same industry, Barrick Mining (B), finished the last trading session 2% higher at $44.73. B has returned 21.9% over the past month.
Barrick Mining's consensus EPS estimate for the upcoming report has changed +1.2% over the past month to $0.86. Compared to the company's year-ago EPS, this represents a change of +87%. Barrick Mining currently boasts a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
