Stock of the Day

February 3, 2020

Agnico Eagle Mines (AEM)

$96.09
-$1.96 (-2.0%)
Market Cap: $49.31B

About Agnico Eagle Mines

Agnico Eagle Mines Limited, a gold mining company, exploration, development, and production of precious metals. It explores for gold. The company's mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities in Canada, Australia, Europe, Latin America, and the United States. Agnico Eagle Mines Limited was incorporated in 1953 and is headquartered in Toronto, Canada.

Agnico Eagle Mines Bull Case

Here are some ways that investors could benefit from investing in Agnico Eagle Mines Limited:

  • The recent price target upgrades from analysts, with Royal Bank of Canada raising its target from $96.00 to $105.00, indicate strong confidence in the company's future performance.
  • Agnico Eagle Mines Limited has a solid market capitalization of $48.09 billion, reflecting its stability and potential for growth in the mining sector.
  • The company reported a return on equity of 8.88%, which suggests effective management and profitability relative to shareholder equity.
  • Current stock price is $95.75, which is near its 52-week high of $101.45, indicating strong market interest and potential for further appreciation.
  • Analysts have given the stock an average rating of "Moderate Buy," with a consensus target price of $92.75, suggesting that many believe the stock is undervalued at its current price.

Agnico Eagle Mines Bear Case

Investors should be bearish about investing in Agnico Eagle Mines Limited for these reasons:

  • The company recently missed earnings estimates, reporting $1.26 per share against a consensus of $1.70, which may raise concerns about its short-term profitability.
  • Analysts have lowered their FY2024 earnings estimates from $4.36 to $4.16 per share, indicating potential challenges in meeting previous growth expectations.
  • The stock has a high P/E ratio of 47.87, which may suggest that it is overvalued compared to its earnings, making it a riskier investment.
  • With a debt-to-equity ratio of 0.06, while low debt is generally positive, it may indicate limited leverage for growth opportunities compared to competitors.
  • Recent trading volume was significantly higher than average, which could indicate volatility and uncertainty in the stock's performance.

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