Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Agnico Eagle Mines

(

AEM

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Agnico Eagle Mines as such a stock due to the following factors:

  • AEM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $74.4 million.
  • AEM has traded 390,643 shares today.
  • AEM is trading at 4.17 times the normal volume for the stock at this time of day.
  • AEM is trading at a new low 7.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AEM:

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties. It primarily explores for gold, as well as for silver, copper, zinc, and lead. The stock currently has a dividend yield of 1.4%. Currently there are 10 analysts that rate Agnico Eagle Mines a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Agnico Eagle Mines has been 2.1 million shares per day over the past 30 days. Agnico Eagle Mines has a market cap of $5.0 billion and is part of the basic materials sector and metals & mining industry. Shares are down 6.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Agnico Eagle Mines as a

hold

. The company's strengths can be seen in multiple areas, such as its expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:

  • 48.87% is the gross profit margin for AGNICO EAGLE MINES LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.94% trails the industry average.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 45.65%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 79.03% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 73.6% when compared to the same quarter one year ago, falling from $108.85 million to $28.74 million.

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