Agnico Eagle Mines Limited (AEM) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Agnico Eagle Mines (AEM)? Shares have been on the move with the stock up 18.5% over the past month. The stock hit a new 52-week high of $126.76 in the previous session. Agnico Eagle Mines has gained 57.9% since the start of the year compared to the 0.9% move for the Zacks Basic Materials sector and the 53.8% return for the Zacks Mining - Gold industry.What's Driving the Outperformance?The stock has an impressive 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 February 13, 2025, Agnico reported EPS of $1.26 versus consensus estimate of $1.17 while it beat the consensus revenue estimate by 6.03%.For the current fiscal year, Agnico is expected to post earnings of $5.62 per share on $9.7 billion in revenues. This represents a 32.86% change in EPS on a 17.04% change in revenues. For the next fiscal year, the company is expected to earn $4.89 per share on $9.28 billion in revenues. This represents a year-over-year change of -12.99% and -4.36%, respectively.Valuation MetricsAgnico may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.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. Investors should consider the style scores a valuable tool that can help you to 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 B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 22X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.8X. On a trailing cash flow basis, the stock currently trades at 17.1X versus its peer group's average of 10.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Agnico currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.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 Newmont Corporation (NEM). NEM has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of A.Earnings were strong last quarter. Newmont Corporation beat our consensus estimate by 47.37%, and for the current fiscal year, NEM is expected to post earnings of $3.83 per share on revenue of $18.43 billion.Shares of Newmont Corporation have gained 17.9% over the past month, and currently trade at a forward P/E of 14.41X and a P/CF of 9.47X.The Mining - Gold industry may rank in the bottom 57% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for AEM and NEM, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Newmont Corporation (NEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks