Though it hasn’t acquired the airtime it deserves, gold costs have been rocketing increased this yr. With extra new document highs this week, gold has outperformed the S&P 500 by a big margin year-to-date and for the reason that begin of 2023. Not surprisingly, gold miner shares like Agnico Eagle Mines (AEG) have additionally carried out properly this yr.
Agnico Eagle Mines has every thing a gold investor might ask for, together with a rock-solid steadiness sheet, sturdy inventory worth momentum, big earnings development forecasts and an affordable valuation. Moreover, the inventory boasts a prime Zacks Rank, considerably rising the percentages of an additional near-term rally.
Picture Supply: TradingView
Highly effective Earnings Revision Pattern in AEG
As the worth of gold rallies, gold mining shares take pleasure in speedy growth of their margins, Agnico Eagle Mines included. As we speak, AEG has a Zacks Rank #1 (Robust Purchase) score, mirrored by important revisions increased to its earnings estimates.
Analysts have practically unanimously upgraded earnings forecasts during the last two months, with FY25 earnings estimates leaping by a hefty 23.4% during the last 60 days. FY24 earnings estimates have additionally been revised increased by 9.9% and are projected to climb 79.8% YoY to $4.01 per share. Over the subsequent three to 5 years EPS are anticipated to develop at a formidable 28.2% yearly.
It’s also value noting that the Mining – Gold Trade at present sits within the Prime 4% (9 out of 251) of the Zacks Trade Rank, and that the Zacks Earnings ESP is projecting the subsequent earnings interval to be analysts estimates by 5.82%.
Picture Supply: Zacks Funding Analysis
AEG Inventory Technical Setup
Rounding the compelling funding alternative in Agnico Eagle Mines inventory is a technical buying and selling setup. Over the past week or so, the worth motion has been forming a bull flag from which traders can simply measure a commerce.
If the inventory can commerce above the $88.75 stage, it might sign a technical breakout. Alternatively, if the inventory loses the $86 stage of assist, it could be value ready for an additional alternative.
Picture Supply: TradingView
Ought to Buyers Purchase Agnico Eagle Mines Shares?
Agnico Eagle Mines is at present buying and selling at a one yr ahead earnings a number of 0f 21.6x, which is under the broad market common and properly under its 10-year median of 43x. Moreover, with earnings anticipated to develop 28.2% yearly, AEM has a pretty PEG ratio of 0.77, indicating a reduction primarily based on the metric.
For traders looking for publicity to thegold market Agnico Eagle Mines is a robust solution to categorical the commerce. AEG has an affordable valuation, prime Zacks Rank and even pays a 1.8% dividend.
Zacks Names #1 Semiconductor Inventory
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With sturdy earnings development and an increasing buyer base, it is positioned to feed the rampant demand for Synthetic Intelligence, Machine Studying, and Web of Issues. International semiconductor manufacturing is projected to blow up from $452 billion in 2021 to $803 billion by 2028.
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Aegon NV (AEG) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
