A Likely Value Trap For Investors: Agnico Eagle Mines Limited (AEM), Vale S.A. (VALE)

Agnico Eagle Mines Limited (NYSE:AEM) current P/S is an unimpressive 4.82. The overall Gold group has an average P/S ratio of 1.94, which is significantly better than the sector’s 3.07. In the past 13-year record, this ratio went down as low as 2.46 and as high as 25.84. Also, it is down from 75% of the total 673 rivals across the globe.

AEM traded at an unexpectedly high level on 11/29/2017 when the stock experienced a -3.54% loss to a closing price of $43.59. The company saw 1.59 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 1.28 million shares a day, this signifies a pretty significant change over the norm.

Agnico Eagle Mines Limited (AEM) Analyst Gushes

Analysts are speculating a 42.23% move, based on the high target price ($62) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $53.86 price target, but the stock is already up 24.36% from its recent lows. However, the stock is trading at -15.95% versus recent highs ($51.86). Analysts believe that we could see stock price minimum in the $40 range (lowest target price), allowing for another -8.24% drop from its current position. Leading up to this report, we have seen a -3.63% fall in the stock price over the last 30 days and a -13.67% decline over the past 3 months. Overall, the share price is up 3.79% so far this year. Additionally, AEM had a day price range of $43.36 to $44.83.

Agnico Eagle Mines Limited (AEM) Price Potential

Heading into the stock price potential, Agnico Eagle Mines Limited needs to grow just 25.97% to cross its median price target of $54.91. In order to determine directional movement, the 50-day and 200-day moving averages for Agnico Eagle Mines Limited (NYSE:AEM) are $45.02 and $46.58. Given that liquidity is king in short-term, AEM is a stock with 234.03 million shares outstanding that normally trades 0.74% of its float. The stock price recently experienced a 5-day loss of -1.93% with 0.94 average true range (ATR). AEM has a beta of -0.71 and RSI is 39.9.

Investors also need to beware of the Vale S.A. (NYSE:VALE) valuations. The stock trades on a P/S of 1.84, which suggests that the shares are not attractive compared with peers. The broad Industrial Metals & Minerals industry has an average P/S ratio of 0.86, which is significantly better than the sector’s 3.07. In the past 13-year record, this ratio went down as low as 0.58 and as high as 7.07. Also, it is up from 53% of the total 673 rivals across the globe.

Vale S.A. (VALE)’s Lead Over its Technicals

Vale S.A. by far traveled 50.84% versus a 1-year low price of $7.47. The share price was last seen -2.82% lower, reaching at $11.01 on 11/29/2017. At recent session, the prices were hovering between $10.99 and $11.31. This company shares are 3.81% off its target price of $11.43 and the current market capitalization stands at $57.89B. The recent change has given its price a 7.86% lead over SMA 50 and -6.02% deficit over its 52-week high. The stock witnessed 12.12% gains, 1.85% gains and 34.43% gains for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found VALE’s volatility during a week at 2.45% and during a month it has been found around 2.54%.

Vale S.A. (NYSE:VALE) Intraday Metrics

Vale S.A. (VALE) exchanged hands at an unexpectedly high level of 28.58 million shares over the course of the day. Noting its average daily volume at 28.17 million shares each day over the month, this signifies a pretty significant change over the norm.

Vale S.A. Target Levels

The market experts are predicting a 43.51% rally, based on the high target price ($15.8) for Vale S.A. shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $6 range (lowest target price). If faced, it would be a -45.5% drop from its current position. Overall, the share price is up 49.25% year to date.

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