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

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 higher today making it today's featured basic materials winner. The sector as a whole closed the day down 1.1%. By the end of trading, Agnico-Eagle Mines rose 51 cents (1.3%) to $40.36 on average volume. Throughout the day, 1.5 million shares of Agnico-Eagle Mines exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $39.80-$40.82 after having opened the day at $39.88 as compared to the previous trading day's close of $39.85. Other companies within the Basic Materials sector that increased today were: BMB Munai ( BMBM), up 22.8%, Gastar Exploration ( GST), up 19.1%, Gevo ( GEVO), up 6.7%, and Polymet Mining ( PLM), up 6.2%.
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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 $6.82 billion and is part of the metals & mining industry. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are down 24% year to date as of the close of trading on Monday. Currently there are five analysts that rate Agnico-Eagle Mines a buy, no analysts rate it a sell, and 14 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 compelling growth in net income, 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 we feel that the company's cash flow from its operations has been weak overall.

On the negative front, Harvest Natural Resources ( HNR), down 32.6%, ECA Marcellus Trust I ( ECT), down 26.8%, GMX Resources ( GMXR), down 15.5%, and Sutor Technology Group ( SUTR), down 13.1%, were all laggards within the basic materials sector with Hess ( HES) being today's basic materials sector laggard.

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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