Strong On High Volume: Agnico Eagle Mines (AEM)

Trade-Ideas LLC identified Agnico Eagle Mines ( AEM) as a strong 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 $79.9 million.
  • AEM has traded 301,914 shares today.
  • AEM is trading at 2.06 times the normal volume for the stock at this time of day.
  • AEM is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AEM with the Ticky from Trade-Ideas. See the FREE profile for AEM NOW at Trade-Ideas

More details on AEM:

Agnico Eagle Mines Limited engages in the exploration, development, and production of mineral properties in Canada, Finland, and Mexico. It operates through three segments: Northern Business, Southern Business, and Exploration. The stock currently has a dividend yield of 0.9%. AEM has a PE ratio of 331. Currently there are 6 analysts that rate Agnico Eagle Mines a buy, no analysts rate it a sell, and 5 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 $8.0 billion and is part of the basic materials sector and metals & mining industry. The stock has a beta of -0.50 and a short float of 3.3% with 2.50 days to cover. Shares are up 39% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 increase in net income, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 27.0% when compared to the same quarter one year prior, rising from -$21.28 million to -$15.54 million.
  • The gross profit margin for AGNICO EAGLE MINES LTD is rather high; currently it is at 52.41%. It has increased significantly from the same period last year.
  • AEM's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that AEM's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
  • Net operating cash flow has decreased to $140.75 million or 14.15% when compared to the same quarter last year. Despite a decrease in cash flow of 14.15%, AGNICO EAGLE MINES LTD is in line with the industry average cash flow growth rate of -14.36%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Netflix Tanks After Weak Subscriber Growth in 'Strong but not Stellar' Q2

Netflix Tanks After Weak Subscriber Growth in 'Strong but not Stellar' Q2

Global Fund Managers Bearish on Trade War Concerns, Still Love Tech -BAML Survey

Global Fund Managers Bearish on Trade War Concerns, Still Love Tech -BAML Survey

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Netflix, Amazon, Jerome Powell, Walmart and Microsoft - 5 Things You Must Know

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Stocks Drift, Oil Steadies, Dollar Dips as Investors Question Growth Prospects

Jerome Powell Heads to Capitol Hill as Market's Best Recession Gauge Blinks Red

Jerome Powell Heads to Capitol Hill as Market's Best Recession Gauge Blinks Red