Bull of the Day: Agnico Eagle Mines (AEG)

Although it hasn’t received the airtime it deserves, gold prices have been rocketing higher this year. With more new record highs this week, gold has outperformed the S&P 500 by a significant margin year-to-date and since the start of 2023. Not surprisingly, gold miner stocks like Agnico Eagle Mines (AEG) have also performed well this year.Agnico Eagle Mines has everything a gold investor could ask for, including a rock-solid balance sheet, strong stock price momentum, huge earnings growth forecasts and a reasonable valuation. Furthermore, the stock boasts a top Zacks Rank, significantly increasing the odds of a further near-term rally.Image Source: TradingViewPowerful Earnings Revision Trend in AEGAs the price of gold rallies, gold mining stocks enjoy immediate expansion in their margins, Agnico Eagle Mines included. Today, AEG has a Zacks Rank #1 (Strong Buy) rating, reflected by significant revisions higher to its earnings estimates.Analysts have nearly unanimously upgraded earnings forecasts over the last two months, with FY25 earnings estimates jumping by a hefty 23.4% over the last 60 days. FY24 earnings estimates have also been revised higher by 9.9% and are projected to climb 79.8% YoY to $4.01 per share. Over the next three to five years EPS are expected to grow at an impressive 28.2% annually.It is also worth noting that the Mining – Gold Industry currently sits in the Top 4% (9 out of 251) of the Zacks Industry Rank, and that the Zacks Earnings ESP is projecting the next earnings period to be analysts estimates by 5.82%.Image Source: Zacks Investment ResearchAEG Stock Technical SetupRounding the compelling investment opportunity in Agnico Eagle Mines stock is a technical trading setup. Over the last week or so, the price action has been forming a bull flag from which investors can easily measure a trade.If the stock can trade above the $88.75 level, it would signal a technical breakout. Alternatively, if the stock loses the $86 level of support, it may be worth waiting for another opportunity.Image Source: TradingViewShould Investors Buy Agnico Eagle Mines Shares?Agnico Eagle Mines is currently trading at a one year forward earnings multiple 0f 21.6x, which is below the broad market average and well below its 10-year median of 43x. Additionally, with earnings expected to grow 28.2% annually, AEM has an attractive PEG ratio of 0.77, indicating a discount based on the metric.For investors seeking exposure to the gold market, Agnico Eagle Mines is a powerful way to express the trade. AEG has a reasonable valuation, top Zacks Rank and even pays a 1.8% dividend. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Aegon NV (AEG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks