Agnico Eagle Mines Ltd (NYSE:AEM) Emerges as a Strong Growth and Trend Play with Minervini and HGM Screening

AGNICO EAGLE MINES LTD (NYSE:AEM) has been recognized as a possible choice for investors focused on trends and growth, using a combined screening method that includes Mark Minervini’s Trend Template and a High Growth Momentum (HGM) rating. The Minervini Trend Template helps spot stocks in strong upward trends, ensuring they meet specific technical standards, while the HGM rating assesses fundamental growth measures to highlight companies with improving earnings and revenue growth.

Why AEM Matches the Minervini Trend Template

The Trend Template looks for stocks with strong technical health, confirmed by price movement, moving averages, and relative performance. AEM fits these requirements as follows:

• Price Above Key Moving Averages:

  • The current price ($135.42) is significantly higher than the 50-day SMA ($121.90), 150-day SMA ($108.60), and 200-day SMA ($102.25).
  • The 50-day SMA is above both the 150-day and 200-day SMAs, showing bullish alignment across different timeframes.
  • All moving averages are moving upward, supporting the stock’s positive momentum.

• Strong Relative Performance:

  • AEM’s relative strength (CRS) is 91.65, meaning it performs better than 91% of all stocks, a key feature of leading stocks.

• Close to 52-Week High:

  • The stock is trading within 0.4% of its 52-week high ($135.97), showing continued upward movement.
  • It is also 81% above its 52-week low ($74.64), meeting the Minervini rule of being at least 30% above the low.

These factors match Minervini’s approach of focusing on stocks in Stage 2 upward trends—those with clear bullish trends and institutional backing.

High Growth Momentum Fundamentals

Beyond technical strength, AEM shows strong fundamental growth, making it attractive for growth-focused investors:

• Earnings Growth:

  • EPS growth (TTM) is 106.7% YoY, with recent quarterly growth rates of 81.3% (Q2Q) and 101.3% (Q-1).
  • The company has exceeded EPS estimates in all of the last four quarters, with an average beat of 11%.

• Revenue Growth:

  • Revenue growth (TTM) is 25.0% YoY, with recent quarterly growth of 35.6% (Q2Q).
  • Analysts have raised next-year revenue estimates by 8.7% over the past three months, showing confidence in future results.

• Profitability Gains:

  • Profit margins have improved significantly, from 22.9% (FY-1) to 33.0% (last quarter), reflecting better operational efficiency and pricing strength.
  • Free cash flow per share jumped 281.9% YoY, indicating strong cash generation.

These numbers suggest AEM is not only technically strong but also a solid growth option, fitting the "high growth momentum" profile.

Technical Analysis Summary

ChartMill’s technical report gives AEM a perfect 10/10 technical rating, noting:

• Strong short- and long-term upward trends.
• Consistent outperformance compared to the broader market (91% relative strength).
• Recent move to new 52-week highs.

However, the setup rating is lower (2/10), as the stock has risen sharply recently. This suggests investors may want to wait for a pullback or consolidation before buying.

View the full technical report here.

Next Steps for Investors

AEM offers a strong case for trend and growth investors, combining Minervini’s technical standards with solid earnings growth. While the stock is currently at a high level, its growth path and technical strength make it worth watching for potential buying opportunities on dips.

For more stocks that fit this screening method, check out the High Growth Momentum + Trend Template screen.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.