AGNICO EAGLE MINES LTD (NYSE:AEM) – A Gold Stock Meeting Louis Navellier’s Growth Criteria

AGNICO EAGLE MINES LTD (NYSE:AEM) emerged from our screen based on Louis Navellier’s growth investing principles outlined in The Little Book That Makes You Rich. The gold producer demonstrates strong earnings momentum, expanding margins, and robust cash flow—key traits favored by growth investors. Below, we examine how AEM aligns with Navellier’s eight rules.

How AEM Fits Navellier’s Growth Criteria

1. Positive Earnings Revisions – Analysts have raised next-quarter EPS estimates by 27.7% over the past three months, signaling confidence in near-term performance.
2. Earnings Surprises – AEM has surpassed EPS expectations in each of the last four quarters, with an average beat of 11%.
3. Sales Growth – Revenue grew 28.5% year-over-year, while quarterly sales rose 34.9%, reflecting accelerating demand.
4. Expanding Operating Margins – Operating margin improved by 57.2% over the past year, indicating efficient cost management.
5. Strong Cash Flow – Free cash flow surged 281.9% year-over-year, providing flexibility for reinvestment or shareholder returns.
6. Earnings Growth – EPS jumped 106.6% year-over-year, with quarterly growth of 101.3%.
7. Earnings Momentum – The latest quarterly EPS growth (101.3%) significantly outpaced the same quarter’s growth a year prior (33.3%).
8. High Return on Equity – ROE stands at 10.9%, above Navellier’s minimum threshold of 10%.

Fundamental Strengths

AEM’s financial health is solid, with a Profit Margin of 26.5% (top 7% of peers) and an Operating Margin of 42.2% (top 6% of the industry). Debt levels are manageable, with a Debt-to-Equity ratio of 0.05, well below industry averages.

While the stock trades at a P/E of 23.6, slightly below the S&P 500 average, its strong profitability and growth metrics justify the valuation. For a deeper dive, review the full fundamental analysis report.

Our Louis Navellier Growth Screen lists more stocks matching these criteria.

Disclaimer

This is not investing advice! The observations here are based on current data, but investors should conduct their own research before making decisions.