Agnico-Eagle Mines (AEM): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Agnico-Eagle Mines ( AEM) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Agnico-Eagle Mines fell 60 cents (-1.3%) to $44.10 on average volume. Throughout the day, 1.2 million shares of Agnico-Eagle Mines exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $43.98-$45.52 after having opened the day at $44.61 as compared to the previous trading day's close of $44.70. Other companies within the Basic Materials sector that declined today were: Cliffs Natural Resources ( CLF), down 20%, Torch Energy Royalty ( TRU), down 17.5%, Zion Oil & Gas ( ZN), down 13.8%, and Coeur D'Alene Mines Corporation ( CDE), down 10.3%.
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Agnico-Eagle Mines Limited, through its subsidiaries, engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It primarily explores for gold, as well as silver, copper, zinc, and lead. Agnico-Eagle Mines has a market cap of $7.59 billion and is part of the metals & mining industry. Shares are down 15.8% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate Agnico-Eagle Mines a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet 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 find that the company's return on equity has been disappointing.

On the positive front, HyperDynamics Corporation ( HDY), up 26.5%, Recon Technology ( RCON), up 17.9%, Pioneer Energy Services ( PES), up 13.3%, and China Shen Zhou Mining & Resources ( SHZ), up 10.3%, were all gainers within the basic materials sector with Hess ( HES) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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