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 or Stephanie Link.

Trade-Ideas LLC identified

Agnico Eagle Mines

(

AEM

) as a "perilous reversal" (up big yesterday but down big today) 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 $63.3 million.
  • AEM has traded 468,723 shares today.
  • AEM is down 3.1% today.
  • AEM was up 5.1% yesterday.

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More details on AEM:

Agnico Eagle Mines Limited is engaged in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It primarily explores for gold, as well as for silver, copper, zinc, and lead. The stock currently has a dividend yield of 1.3%. Currently there are 11 analysts that rate Agnico Eagle Mines a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Agnico Eagle Mines has been 3.1 million shares per day over the past 30 days. Agnico Eagle Mines has a market cap of $5.1 billion and is part of the basic materials sector and metals & mining industry. Shares are down 9.7% year-to-date as of the close of trading on Monday.

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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 revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • AEM's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.35, 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 0.95 is somewhat weak and could be cause for future problems.
  • 44.94% is the gross profit margin for AGNICO EAGLE MINES LTD which we consider to be strong. Regardless of AEM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AEM's net profit margin of -9.10% significantly underperformed when compared to the industry average.
  • 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 189.3% when compared to the same quarter one year ago, falling from $47.31 million to -$42.28 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, AGNICO EAGLE MINES LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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