Gold Miners ETF (GDX)

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Rising Production, Earnings Have Agnico Eagle Striking Gold
By: Lucas Downey | July 23, 2024

• Gold has been on fire recently, and Canadian gold miner Agnico Eagle Mines Limited (AEM) has been along for the ride.

Based in Toronto, AEM’s business is the exploration, development, and production of precious metals. It has mines in Canada, Australia, Finland, and Mexico, with exploration and development activities focused on Canada, Australia, Europe, Latin America, and the U.S. The company’s facilities are in some of the best gold producing areas in the world.

Its first-quarter gold production grew 8.1% from a year prior, resulting in increased net income (to $337.5 million) and larger per-share earnings of $0.76. Also, AEM continues to control its debt, investment discipline, and costs, which translated to $395.6 million in free cash flow, up 49.4% from the previous year. The company’s current dividend yield is nearly 2.2%.

It’s no wonder AEM shares are up 36% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loving Agnico Eagle Shares

Institutional volumes reveal plenty. Recently, AEM has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in AEM shares. They reflect our proprietary inflow signal, pushing the stock higher:


Source: www.mapsignals.com

Plenty of materials names are under accumulation right now. But there’s a powerful fundamental story happening with Agnico Eagle.

Agnico Eagle Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, AEM has had strong sales and earnings growth:

• 3-year sales growth rate (+29.1%)
• 3-year earnings growth rate (+44.4%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.3%.

Now it makes sense why the stock has been powering to new heights. AEM has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Agnico Eagle has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when AEM was a top pick…generating value along the way:


Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Agnico Eagle Price Prediction

The AEM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

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