We recently published a list of Jim Cramer Was Talking About These 10 Stocks Amid Tariff Chaos. In this article, we are going to take a look at where Agnico Eagle Mines Limited (NYSE:AEM) stands against other stocks that Jim Cramer was talking about amid tariff chaos.
Jim Cramer in a latest program on CNBC talked about the market rebound on Friday, and said that there’s still uncertainty ahead as consumers remain worried about the impact of tariffs.
“Right now people are scared. We saw a shocking decline in the University of Michigan consumer sentiment survey this morning. People fear inflation and worry about their savings, which happens to be, in many cases, the stock market. They don’t know what tariffs mean and they haven’t had them explained to them in any satisfactory way, so they figure the tariffs are yet another thing that raises prices in the supermarket — and that’s probably true.
I know the president and his crew have chosen not to focus on the stock market because they don’t want to have it be a referendum on themselves. I agree with that, but it won’t be — it’ll be the voice of the people and what they’re worried about. Think of the market as a gauge of hope versus despair. The results lately demonstrate despair, even if today we finally got a solid session. The cause and effect are so palpable that you don’t need me to tell you how these gains came about, do you?”
Cramer predicted that retail sales numbers next week will be “dismal” as consumers are worried about losing their jobs and are cutting back on spending.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A macro view of a gold mine, with miners hard at work in the foreground.
Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Funds Investors: 54
Jim Cramer was recently asked about his thoughts on Barrick Gold. He instead recommended Agnico Eagle Mines Limited (NYSE:AEM) as a better buy.
“It’s killing me, it’s killing me that that thing isn’t moving. It’s not doing what I thought it should, so that’s why I’m saying pivot. Agnico Eagle, that’s the one I like. Agnico Eagle, let’s go to.”
Conventum – Alluvium Global Fund stated the following regarding Agnico Eagle Mines Limited (NYSE:AEM) in its Q3 2024 investor letter:
“Our gold miners performed quite well. Agnico Eagle Mines Limited (NYSE:AEM) was up 22.4%, and Regis Resources was up 16.2%. Moving on to Agnico Eagle, its update was all positive, and included promising expansion plans for existing assets. Unlike Regis, there was no reason for its share price not to respond to the favourable conditions in the direct gold markets. However, over the course of our ownership (originally in Kirkland Lake which then merged with Agnico), our investment has moved more toward exploration from operations. Whilst we like upside, and there is no doubt the Agnico management team have executed well and are likely to continue to do so, this was never the main game when it came to our investment in Kirkland Lake in mid 2020. So, it no longer meets our original investment thesis, nor our refined investment philosophy. This is perhaps best illustrated by our earnings based valuation approach. We updated our gold price and exchange rate assumptions leading to higher maintainable earnings estimates, and we adjusted our discount rate to reflect higher growth prospects and increased confidence in management. And our valuation increased by 47%. However it is still barely half the current share price. Accordingly, we sold our position.
So, we no longer invest in any gold miners. The timing of our Regis sale was not great as we missed a subsequent 26.7% rally to the end of the quarter. However, the decision to sell was the right one. This is an example that one should not judge the quality of a decision by its outcome. Net-net the Fund’s total return over its holding period for the gold miners was disappointing, as our 82.8% capital return from Agnico was almost completely wiped out by our 39.8% capital loss from Regis.”
Overall, AEM ranks 4th on our list of stocks that Jim Cramer was talking about amid tariff chaos. While we acknowledge the potential of AEM, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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