Agnico Eagle Mines Limited (AEM) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Agnico Eagle Mines (AEM). Shares have been marching higher, with the stock up 6.8% over the past month. The stock hit a new 52-week high of $129.77 in the previous session. Agnico has gained 64.5% since the start of the year compared to the 15.8% move for the Zacks Basic Materials sector and the 58.7% return for the Zacks Mining - Gold industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 24, 2025, Agnico reported EPS of $1.53 versus consensus estimate of $1.39 while it beat the consensus revenue estimate by 10.21%.For the current fiscal year, Agnico is expected to post earnings of $6.57 per share on $10.5 in revenues. This represents a 55.32% change in EPS on a 26.71% change in revenues. For the next fiscal year, the company is expected to earn $6.97 per share on $10.7 in revenues. This represents a year-over-year change of 6.01% and 1.93%, respectively.Valuation MetricsAgnico may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Agnico has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 19.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.1X. On a trailing cash flow basis, the stock currently trades at 17.8X versus its peer group's average of 11.8X. Additionally, the stock has a PEG ratio of 0.94. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Agnico currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Agnico meets the list of requirements. Thus, it seems as though Agnico shares could have a bit more room to run in the near term.How Does AEM Stack Up to the Competition?Shares of AEM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Kinross Gold Corporation (KGC). KGC has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.Earnings were strong last quarter. Kinross Gold Corporation beat our consensus estimate by 36.36%, and for the current fiscal year, KGC is expected to post earnings of $1.21 per share on revenue of $6.08 billion.Shares of Kinross Gold Corporation have gained 7.1% over the past month, and currently trade at a forward P/E of 13.53X and a P/CF of 10.15X.The Mining - Gold industry is in the top 5% of all the industries we have in our universe, so it looks like there are some nice tailwinds for AEM and KGC, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks