Is Agnico Eagle Mines Stock’s 22% Drop A Bargain?
Agnico Eagle Mines (AEM) stock has fallen by 22.2% in less than a month, from $252.19 on 2nd Mar, 2026 to $196.09 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, AEM stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 14% , with median peak return reaching 25%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | -0.3% |
| 3M | 1.3% |
| 6M | 9.5% |
| 12M | 13.8% |
Historical Dip-Wise Details
AEM had 14 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 25% median peak return within 1 year of dip event
- 244 days is the median time to peak return after a dip event
- -18% median max drawdown within 1 year of dip event
| 30 Day Dip | AEM Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | AEM | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 14% | 25% | -18% | 244 | ||||
| 3082023 | -21% | -0% | 26% | 35% | -2% | 57 | ||
| 7182022 | -23% | -8% | 30% | 45% | -11% | 290 | ||
| 2192021 | -21% | 4% | -4% | 24% | -21% | 90 | ||
| 11232020 | -22% | 1% | -18% | 19% | -21% | 45 | ||
| 2282020 | -21% | -10% | 18% | 83% | -24% | 199 | ||
| 8152018 | -23% | 4% | 68% | 70% | -8% | 362 | ||
| 2282018 | -20% | -2% | 12% | 26% | -14% | 127 | ||
| 11112016 | -22% | 0% | 8% | 23% | -14% | 298 | ||
| 7172015 | -21% | 2% | 125% | 128% | -16% | 362 | ||
| 9222014 | -22% | 4% | -23% | 15% | -29% | 133 | ||
| 10082013 | -23% | 0% | 24% | 70% | -4% | 293 | ||
| 4262013 | -22% | 1% | -4% | 15% | -21% | 321 | ||
| 2152013 | -20% | 4% | -16% | 2% | -40% | 11 | ||
| 10192011 | -35% | 1% | 15% | 18% | -30% | 351 | ||
Agnico Eagle Mines Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 43.7% | Pass |
| Revenue Growth (3-Yr Avg) | 28.1% | Pass |
| Operating Cash Flow Margin (LTM) | 57.2% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 241.4 | |
| => Cash To Interest Expense Ratio | 103.1 |
Not sure if you can take a call on AEM stock? Consider portfolio approach
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