On Tuesday Agnico Eagle Mines Relative Strength (RS) Rating climbed to 89, up from 77 the day before. When looking for the best stocks to buy and watch, focus on those with rising relative price strength. Agnico stock fits that bill.
Shares of Agnico Eagle Mines popped more than 8% early Tuesday in heavy volume before giving up some of the gain in the afternoon. The gold mining stock is looking for its third straight day of strong gains in high volume. Meanwhile, investors are seeking shelter amid the deepening market correction. At the close Monday, the Nasdaq was already down more than 20% from its top last fall, a drop that fits the definition of a bear market. Agnico stock traded at 60.75 Tuesday afternoon, up 4.3%.
Agnico Stock Moves Into Top Echelon
The new 89 RS Rating means that Agnico stock has performed in the top 16% of all stocks, regardless of industry, over the past year. Market research makes clear that stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves.
As this morning's Stock Market Today column pointed out, the precious metal continues its upward climb: "Gold climbed 3.6% at midday to $2,067.20 an ounce."
Meanwhile, among its other key ratings, Agnico stock has an 89 Composite Rating, of 99. It also has a 62 EPS Rating and a B Accumulation/Distribution Rating, indicating fairly strong buying of its stock by institutional investors. The gold/silver/gems mining group ranks A+ and holds a lofty no. 14 position on IBD's list of 197 industries.
In terms of fundamentals, its earnings have grown consistently. But growth has been sporadic since late last year amid market consolidation. In the most recent quarter, Agnico's earnings slid 31% to 46 cents per share. The prior three periods its EPS grew 191%, 283% and then fell 23%. Revenue grew 2% last quarter to $949.1 million. Look for EPS and revenue growth rates to increase amid strong and rising demand for gold.
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Although on Tuesday it traded at the highest point since early August, Agnico stock is not currently near a potential buy zone. See if the stock goes on to form a base such as a cup with handle that could spark a new run.
Agnico stock holds the No. 12 rank among its peers in the Mining-Gold/Silver/Gems industry group. Buenaventura Mining and Franco-Nevada are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This unique rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of other stocks on the major indexes.
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