Gold stocks have outperformed this year as the price of the precious metal hit new highs. The reason: Investors turned to safe haven assets amid trade uncertainty and a weak dollar. Agnico-Eagle Mines stock has become one of those assets.
The world's second largest gold producer, Agnico-Eagle is trading in a cup-with-handle base with the miner's second-quarter earnings report due out soon. The IBD 50 Growth Stocks To Watch name has outperformed and gained 50% so far this year. Shares are dipping modestly in light volume Thursday.
Agnico-Eagle Mines is joined by fellow Canadian gold miner Orla Mining on Investor's Business Daily's Sector Leaders list.
Toronto-based Agnico-Eagle operates 10 gold, silver, copper, and zinc mines found in Canada, Australia, Finland and Mexico.
Agnico-Eagle stands tied for first place out of 79 stocks in the Mining-Gold/Silver/Gems group. The group holds the lofty 26th spot out of the 197 industry groups that Investor's Business Daily tracks.
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Gold Stock Sits In A Base
Agnico-Eagle is in a late stage cup with handle with a 126.65 buy point, according to MarketSurge pattern recognition. The base started forming after shares reached an all-time high in late April. The stock is hugging its 50-day moving average in the handle.
Its relative strength line reversed from its April high and is trending downward, which is a negative sign for the gold stock. Its IBD Relative Strength Rating has also deteriorated to 89 from 94 four weeks ago.
Agnico reported better-than-expected profit and revenue for its first quarter on April 24. Its profit jumped to $1.53 per share, or a hearty 101% increase.
Its trend of three straight quarters of triple-digit earnings growth looks to end, with analyst forecasts calling for 58% in the second quarter. Analysts see profit growth slowing to 6% over the next four quarters.
Agnico-Eagle Earnings Sales Growth Slowing
The gold miner's revenue bumped up 35% in the first quarter and averaged 27% growth over the last six quarters. Wall Street sees more of the same, with sales rising an average 26% over the next three quarters, before sliding to 6%.
Agnico's second-quarter results are due on July 30, after the market close.
Analysts have recently raised their full-year 2025 profit forecasts to reflect 55% growth, then drop to 4% for full-year 2026.
Mutual funds have been unloading shares, with 2,208 funds holding the gold stock in June, down from 2,218 in March. And its IBD Accumulation/Distribution Rating of C- indicates more institutional selling than buying over the last 13 weeks.
But the gold stock boasts a best-possible 99 Composite Rating and a 98 Earnings Per Share Rating.
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