Does AGNICO EAGLE MINES LTD (NYSE:AEM) show the characteristics of a Minervini super stock?

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)

Some of the high growth metrics of AEM highlighted

ChartMill assigns a proprietary High Growth Momentum Rating (HGM) to each stock. The score is computed by evaluating various growth and profitability aspects aspects, like EPS and revenue growth, accelleration, surprises and revisions. AEM was assigned a score of 6 for growth:

Earnings Momentum

• AEM has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 121.0% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• AEM has experienced 89.69% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• AEM has achieved 26.59% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• 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.
• 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 positive growth in its operating margin over the past year, AEM showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• AEM has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• A Debt/Equity ratio of 0.06 highlights AEM's commitment to maintaining financial stability.

Market Strength & Institutional Confidence

• The ownership composition of AEM reflects a balanced investor ecosystem, with institutional shareholders owning 70.84%. This indicates a broader market participation and potential for increased trading liquidity.
• AEM has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 96.82 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How does the Setup look for AEM

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, AEM has a 5 as its setup rating, indicating its current consolidation status.

AEM has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of AEM for a complete technical analysis.

More like this

It looks like AGNICO EAGLE MINES LTD meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.