In the latest trading session, Agnico Eagle Mines (AEM) closed at $44.96, marking a +0.42% move from the previous day. This move outpaced the S&P 500's daily loss of 1.85%. At the same time, the Dow lost 1.66%, and the tech-heavy Nasdaq lost 10.91%.
Prior to today's trading, shares of the gold mining company had lost 15.03% over the past month. This has lagged the Basic Materials sector's loss of 1.25% and the S&P 500's loss of 2.85% in that time.
Wall Street will be looking for positivity from Agnico Eagle Mines as it approaches its next earnings report date. The company is expected to report EPS of $0.43, down 29.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.3 billion, down 1.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $6 billion. These totals would mark changes of -20.43% and +4.55%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 12.95% lower. Agnico Eagle Mines is currently a Zacks Rank #3 (Hold).
Investors should also note Agnico Eagle Mines's current valuation metrics, including its Forward P/E ratio of 24.49. Its industry sports an average Forward P/E of 15.92, so we one might conclude that Agnico Eagle Mines is trading at a premium comparatively.
We can also see that AEM currently has a PEG ratio of 24.49. 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. Mining - Gold stocks are, on average, holding a PEG ratio of 3.71 based on yesterday's closing prices.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
