Top Stock to Buy #1 – Agnico-Eagle Mines Ltd. (AEM)
Agnico-Eagle Mines Ltd. (NYSE:AEM) is a Canada-based international gold producer with operations in most gold-producing countries. The company reported Q2 earnings of 40 cents versus estimates of 33 cents. Production guidance for the year has been raised, and costs have fallen to the lower range of management’s estimates.
Technically the stock popped higher in July on a breakaway gap and a golden cross and ran for a quick 8 points to its current level. Note: Breakaway gaps usually remain open whereas continuation gaps are most often quickly closed by pressure from profit-taking.
This is one of analysts’ favorite gold mining stocks, but it is slightly overpriced. Buy AEM on a pullback to its 50-day moving average at $42 with a trading objective of $50. Longer-term buyers can expect AEM to climb to $70 within 12 months.