Agnico Eagle Mines: Undervalued Miner Poised to Benefit from Rising Gold Prices

Agnico Eagle Mines is a top buy and hold miner due to rising gold prices and monetary volatility. Since last May, I have had a bullish view on the company, citing its undervalued status and lower risks. Agnico Eagle's stock has performed well, and I believe it will continue to outperform the market as gold prices soar.

Agnico Eagle Mines (AEM) has demonstrated strong performance in recent trading sessions, ending the day at $122.15 with a +1.74% change from the preceding day's closing price [1]. This performance outpaced the S&P 500's daily loss of 0.79%, the Dow's drop of 0.94%, and the Nasdaq's decrease of 0.92%. Over the past month, AEM's shares have gained 1.77%, lagging the Basic Materials sector's gain of 4.52% and the S&P 500's gain of 5.22% [1].

The upcoming earnings release of Agnico Eagle Mines, scheduled for July 30, 2025, is expected to be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.61, reflecting a 50.47% increase from the same quarter last year. The consensus estimate forecasts revenue to be $2.55 billion, indicating a 22.94% growth compared to the corresponding quarter of the prior year [1].

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.3 per share and revenue of $10.49 billion, representing changes of +48.94% and +26.62%, respectively, from the prior year [1]. The company's strong earnings growth and revenue projections are indicative of its robust business operations and potential for future expansion.

Agnico Eagle Mines currently features a Zacks Rank of #1 (Strong Buy), which is a quantitative model that includes estimate changes and presents a viable rating system [1]. The Zacks Rank system has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988 [1]. The Zacks Consensus EPS estimate has moved 4.52% higher over the past month, reflecting analysts' positivity towards the company's business operations and its ability to generate profits [1].

Valuation-wise, AEM is currently being traded at a Forward P/E ratio of 19.06, which is a premium relative to the industry average Forward P/E of 13.28. The company also has a PEG ratio of 0.9, which takes into account the expected earnings growth rate [1]. The average PEG ratio for the Mining - Gold industry stood at 0.53 at the close of the market yesterday [1].

With its current Zacks Industry Rank of 52, the Mining - Gold industry ranks in the top 22% of all industries, numbering over 250 [1]. The Zacks Industry Rank assesses the strength of separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [1].

Agnico Eagle Mines' strong performance and positive outlook make it a top buy and hold miner, particularly in the context of rising gold prices and monetary volatility. The company's undervalued status and lower risks have contributed to its bullish view, and its stock has performed well, indicating continued potential for outperformance as gold prices soar.

References:
[1] https://finance.yahoo.com/news/agnico-eagle-mines-aem-ascends-215004756.html
[2] https://www.nasdaq.com/articles/agnico-eagle-mines-aem-ascends-while-market-falls-some-facts-note-0
[3] https://simplywall.st/stocks/us/materials/nyse-aem/agnico-eagle-mines