AGNICO EAGLE MINES LTD (NYSE:AEM) – A Strong Contender in High-Growth Momentum and Minervini’s Trend Template

AGNICO EAGLE MINES LTD (NYSE:AEM) stands out as a compelling candidate for investors following Mark Minervini’s strategy and those seeking high-growth momentum stocks. The company, a gold producer with operations across Canada, Australia, and Mexico, meets the technical criteria of Minervini’s Trend Template while also demonstrating strong growth fundamentals.

Why AEM Fits Minervini’s Trend Template

Minervini’s Trend Template focuses on identifying stocks in strong uptrends with favorable technical conditions. AEM checks all the key boxes:

• Price Above Key Moving Averages:
  • Current price ($123.91) is above the 50-day SMA ($116.15), 150-day SMA ($99.35), and 200-day SMA ($95.15).
  • The 50-day SMA is above both the 150-day and 200-day SMAs, confirming bullish momentum.
• Upward-Trending Moving Averages:
  • The 150-day and 200-day SMAs are rising, reinforcing long-term strength.
• Strong Relative Strength:
  • AEM’s ChartMill Relative Strength (CRS) is 94.96, indicating it outperforms nearly 95% of all stocks.
• Price Near 52-Week High:
  • Trading at $123.91, just 2.3% below its 52-week high of $126.76.
  • The stock is also 93.8% above its 52-week low ($63.93), showing strong recovery and growth.

High-Growth Momentum Fundamentals

Beyond technical strength, AEM exhibits robust growth metrics:

• Earnings Growth:
  • EPS (TTM) stands at $5.00, up 106.6% year-over-year.
  • Quarterly EPS growth (Q2Q) surged 101.3%, with prior quarters showing even stronger gains (121.1%, 159.1%).
• Revenue Expansion:
  • Revenue (TTM) grew 28.5% year-over-year.
  • Quarterly sales growth (Q2Q) was 34.9%, with consistent upward revisions in estimates.
• Profit Margins Improving:
  • Latest quarterly profit margin hit 33.0%, up from 22.9% in the prior quarter.
  • Free cash flow per share grew 281.9% year-over-year.
• Analyst Confidence:
  • EPS estimates for next year have been revised upward by 6.8% over the past three months.
  • Revenue estimates for next year have been raised by 9.1%.

Technical Analysis Summary

According to ChartMill’s technical report, AEM scores a perfect 10 on technical health, supported by:

• Strong short- and long-term uptrends.
• Leading performance within the Metals & Mining industry (outperforming 80% of peers).
• High liquidity with an average daily volume of 3.89 million shares.

While the setup quality is currently medium due to recent volatility, the stock’s technical strength and growth momentum make it a noteworthy candidate for further analysis.

Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.