Evaluating AGNICO EAGLE MINES LTD (NYSE:AEM) using Mark Minervini’s winning stock formula

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if AGNICO EAGLE MINES LTD (NYSE:AEM) is suited for growth investing. Investors should of course do their own research, but we spotted AGNICO EAGLE MINES LTD showing up in our Minervini growth screen, so it may be worth spending some more time on it.

A Technical Analysis using the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for AEM:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Looking into the high growth metrics of AGNICO EAGLE MINES LTD

Explosive Earnings Growth

• In the most recent financial report, AEM reported a 121.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• Over the past year, AEM has demonstrated 89.69% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The earnings per share (EPS) growth of AEM are accelerating: the current Q2Q growth of 121.0% is above the previous year Q2Q growth of 39.02%. Earnings momentum and acceleration are key for high growth systems.
• The q2q revenue growth of 26.59% of AEM highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• With notable 1-year revenue growth of 25.03%, AEM exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The average next Quarter EPS Estimate for AEM has experienced a 4.97% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• AEM has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, AEM demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• The free cash flow (FCF) of AEM has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• AEM maintains a healthy Debt-to-Equity ratio of 0.06. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.

Market Strength & Institutional Confidence

• With institutional shareholders at 70.84%, AEM demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• AEM has achieved an impressive Relative Strength (RS) rating of 96.22, showcasing its ability to outperform the broader market. This strong performance positions AGNICO EAGLE MINES LTD as an attractive stock for potential price appreciation.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:AEM is 8:

Besides having an excellent technical rating, AEM also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 97.02, a Stop Loss order could be placed below this zone.

Our latest full technical report of AEM contains the most current technical analsysis.

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.