Agnico Eagle Mines (AEM) is forming a base with an 85.56 buy point with its next quarterly report set for Oct. 28. The current formation is a first-stage cup with handle.


It’s a first-stage base after it dropped below the buy point of its most recent base. That’s bullish because stocks that break out from early stage bases are more likely to succeed than from later stage bases.

Agnico Eagle Profit Cools To ‘Just’ Double-Digit Growth

Agnico Eagle’s earning per share have cooled from the triple-digit gains it saw late last year and earlier this year. Gold stocks shot up amid the increased market volatility as the Covid-19 outbreak turned into a pandemic. They’ve cooled somewhat since then as the world fights back. Still, it’s posted double-digit growth the past two quarters.

For the June 30-ended quarter, EPS climbed 80% year over year to 18 cents a share. Revenue rose just 6% to $557.2 million. However, that was its first single-digit gain following three quarter of double-digit revenue growth.

Analysts Expect 94% Profit Gain This Year

Analysts are looking for EPS growth of 80% for the quarter, and 94% growth for the full year. Annual growth estimates were recently revised higher.

The company has a strong 91 Composite Rating, on a 1-99 scale, and holds the No. 10 rank among its peers in the Mining-Gold/Silver/Gems industry group. Eldorado Gold (EGO), Caledonia Mining (CMCL) and Gold Fields (GFI) are among the top 5 highly rated stocks in the group.

Additionally, Agnico Eagle has a 93 EPS Rating, reflecting strong profit growth in recent quarters and year. Its Accumulation/Distribution Rating is C+ on an A+ to E ranking, meaning that slightly more funds and other institutions are accumulating shares than selling.

Looking For Winning Stocks? Try This Simple Routine

Buying just before a stock reports can be risky, since an EPS or sales miss could send it sharply lower.

You can reduce your risk on Agnico Eagle and other stocks with earning by waiting to see the actual numbers and the market’s reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.

Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.


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The post Earnings Season Preview: Agnico Eagle Mines Near Buy Zone With EPS Due appeared first on Investor’s Business Daily.

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