Is AGNICO EAGLE MINES LTD (NYSE:AEM) a Minervini-style 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.

Does AEM pass the Minervini Trend Template check?

AEM checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ 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)

Unpacking AEM's High Growth Momentum Rating

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. AEM has achieved a 6 out of 10:

Explosive Earnings Growth

• The quarterly earnings of AEM have shown a 101.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• Over the past year, AEM has demonstrated 107.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• AEM has demonstrated strong q2q revenue growth of 34.89%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• The sales growth of AEM is accelerating: the current Q2Q growth of 34.89% is above the previous quarter Q2Q growth of 26.59%. Sales momentum and acceleration are key for high growth systems.
• AEM has achieved significant 1-year revenue growth of 28.46%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• With a track record of beating EPS estimates in the last 4 quarters, AEM showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• AEM has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• 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.
• The Return on Equity (ROE) of AEM stands at 10.92%, reflecting the company's strong profitability and effective utilization of shareholder equity. This metric signifies the company's ability to generate returns for its investors.
• With a Debt/Equity ratio of 0.05, AEM appears to have a manageable debt load relative to its assets.

Institutional Confidence & Market Strength

• AEM demonstrates a balanced ownership structure, with institutional shareholders at 70.84%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• AEM has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 96.7 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How do we evaluate the setup for AEM?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. AEM currently has a 5 as setup rating:

Besides having an excellent technical rating, AEM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry.

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

Concluding

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.