Agnico Eagle Mines Limited (AEM) Buy or Sell Stock Guide

February 12, 2020

Are you looking for the analysis of Agnico Eagle Mines Limited (AEM) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 4 reasons to buy and 6 reasons to sell AEM stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AEM stock:

  • Is AEM a buy or a sell?
  • Should I sell or hold AEM stock today?
  • Is AEM a good buy / investment?
  • What are AEM analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AEM stock:

1. AEM quarterly revenue growth was 31.70%, higher than the industry and sector average revenue growth (0.87% and 1.40%, respectively). See AEM revenue growth chart.

2. AEM forward dividend yield is 1.15%, higher than the industry (0.09%) and sector (0.19%) forward dividend yields. See AEM forward dividend chart.

3. AEM average analyst rating is Buy. See AEM analyst rating chart.

4. AEM average analyst price target ($69.98) is above its current price ($59.61). See AEM price target chart.

Now that you understand the bull case, let’s look at the reasons to sell AEM stock (i.e., the bear case):

1. AEM profitability is declining. The YoY profit margin change was -25.78 percentage points. See AEM profitability chart.

2. AEM forward P/E ratio is 34.15, and it’s high compared to its industry peers’ P/E ratios. See AEM forward P/E ratio chart.

3. AEM Price/Book ratio is 3.09, and it’s high compared to its industry peers’ P/B ratios. See AEM forward Price/Book ratio chart.

4. AEM Price/Sales ratio is 6.50, and it’s high compared to its industry peers’ P/S ratios. See AEM forward Price/Sales ratio chart.

5. AEM PEG ratio (P/E adjusted for growth) is 1.03, and it’s high compared to its industry peers’ PEG ratios. See AEM PEG chart.

6. AEM short interest (days to cover the shorts) ratio is 3.74. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AEM short interest ratio chart.

Now let's look at the key statistics for AEM:

Metrics AEM
Price $52.75
Average Price Target / Upside $69.98 / 32.66%
Average Analyst Rating Buy
Forward Dividend Yield 1.18%
Industry Gold
Sector Basic Materials
Number of Employees 6,156
Market Cap $11.95B
Forward P/E Ratio 26.53
Price/Book Ratio 4.79
Revenue (TTM) $2.49B
YoY Quarterly Revenue Growth 40.00%
Profit Margin 18.96%

What are your thoughts on AEM?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

Follow Us