Chicago, IL – May 8, 2025 – Zacks Equity Research shares Agnico Eagle Mines Ltd. AEM as the Bull of the Day and Helen of Troy Limited HELE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on PepsiCo Inc. PEP, The Coca-Cola Company's KO and Monster Beverage MNST.
Here is a synopsis of all five stocks:
Agnico Eagle Mines Ltd. is posting record net income as gold soars to new highs. This Zacks Rank #1 (Strong Buy) is expected to return a lot of cash to shareholders this year.
Agnico Eagle is headquartered in Toronto, Canada and is the third largest gold producer in the world. It has operations in Canada, Australia, Finland, and Mexico with other exploration and development projects ongoing.
Founded in 1957, Agnico Eagle is focused on the shareholder. It has paid a cash dividend every year since 1983.
On Apr 24, 2025, Agnico Eagle reported its first quarter 2025 results and beat on the Zacks Consensus Estimate by $0.14. Earnings were $1.53, easily beating the Zacks Consensus of $1.39.
It was the 13th consecutive earnings beat.
Agnico Eagle saw payable gold production of 873,794 ounces at an all-in sustaining costs ("AISC") per ounce of $1,183. It was led by Canadian Malartic, LaRonde, Macassa and the Nunavut operations.
The company reaffirmed full year production and cost guidance.
With gold at record highs, so was adjusted net income. It also had a strong free cash flow of $594 million.
Agnico Eagle's cash position rose by $212 million to $1.138 billion and approached a zero net debt position. At the end of the first quarter, total debt outstanding was $1.143 billion and net debt was reduced to just $5 million.
Agnico Eagle has focused on the shareholders for decades. With gold at record levels, that continues to be true.
It is paying a quarterly dividend of $0.40, which is yielding 1.3%. The company is also repurchasing shares. It repurchased 488,047 shares during the quarter at an average price of $102.44.
Agnico Eagle intends to renew the share buyback program under the same terms this year.
Analysts remain bullish on Agnico Eagle for this year. 1 earnings estimate was raised in just the last week for 2025, but 4 were raised after the earnings report.
The Zacks Consensus Estimate has risen to $6.11 from $5.30 just 30 days ago. That's earnings growth of 44.4% as the company made just $4.23 last year.
Shares of Agnico Eagle have been red-hot for the last year, easily outperforming the S&P 500 during the same time.
They are still attractively priced with a forward price-to-earnings (P/E) ratio of just 19.5. Agnico Eagle also has a PEG ratio of 1.0. A PEG under 1.0 usually indicates a company has both growth and value.
For investors interested in the gold miners and the gold trade, Agnico Eagle should be on your short list.
Helen of Troy Limited is facing a management shake-up and a tariff hit. This Zacks Rank #5 (Strong Sell) is expected to see earnings decline by 15.6% in fiscal 2026.
Helen of Troy is a global consumer products company in two business segments: Beauty & Wellness and Home & Outdoor. It has many well-known brands including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, Drybar and Curlsmith.
On Apr 24, 2025, Helen of Troy reported its fourth quarter fiscal 2025 earnings and missed on the Zacks Consensus but only by a penny. Earnings were $2.33 versus the Zacks Consensus of $2.34.
Sales fell 0.7% year-over-year.
But the fourth quarter was not the real story of the last few weeks. That's in the past. The tariffs are what the Street is focused on now.
Helen of Troy didn't provide guidance for fiscal 2026 and its press release was grim. Helen of Troy has exposure to the tariffs.
"To mitigate the Company's risk of ongoing exposure to tariffs, it has intensified efforts to diversify its production outside of China into regions where it expects tariffs or overall costs to be lower and to source the same product in more than one region, to the extent it is possible and not cost-prohibitive," said the press release.
"The Company expects to reduce its cost of goods sold exposed to China tariffs to less than 20% by the end of fiscal 2026. The Company continues to assess and implement other mitigation actions, which include cost reductions from suppliers and price increases to customers. While the Company has not yet made all its pricing decisions, price increases are being considered, along with other mitigation strategies," it added.
Given all the uncertainty, Helen of Troy was implementing a number of measures to reduce costs and preserve cash flow.
Given the tariff uncertainty, it's not a surprise that the analysts cut their fiscal 2026 earnings estimates.
2 estimates were cut in the last 30 days which pushed the fiscal 2026 Zacks Consensus down to $6.05 from $7.76.
That's a decline of 15.6% as the company made $7.17 in fiscal 2025.
Here's what it looks like on the 5-year price and consensus chart.
On May 2, 2025, after the release of the fourth quarter fiscal 2025 earnings, the Helen of Troy CEO, Noel Geoffroy, resigned as CEO and as a director of the Company, effective immediately.
Brian Grass, the CFO, was appointed interim CEO by the Board of Directors. Additionally, the Board also appointed Tracy Scheuerman as the interim CFO. She had previously been Senior Vice President, Finance for the Home & Outdoor segment.
With the earnings miss, lack of guidance for fiscal 2026 and the management shake-up, it's not a surprise that the stock has tumbled.
Shares of Helen of Troy are down 58.9% year-to-date. But they're also trading at new 5-year lows.
It has a forward price-to-earnings (P/E) ratio of just 4.2, but with the earnings estimate cuts, that low of a P/E ratio sends up a red flag.
Investors interested in a company with tariff exposure, like Helen of Troy, might want to wait on the sidelines until there is more clarity regarding the impact on sales and earnings.
Shares of PepsiCo Inc. hit a new 52-week low of $130.16 yesterday, before rising 0.4% to close trading at $130.74. The current price reflects a 28.7% discount from its 52-week high of $183.41, highlighting a challenging year for the beverage company.
Overall, the PEP stock has trended downward in the past year, driven by challenges in its North America operations since the start of 2024, including reduced consumer demand and product recalls in the QFNA segment. Additionally, the recent tariff-related headwinds have led investors to lose confidence in the stock's prospects.
In the year-to-date period, PEP shares have declined 14% against the broader industry's 6.9% rise and the Zacks Consumer Staples sector's 5% growth. The stock has also underperformed the S&P 500's decline of 4.3% in the same period.
PEP shares have underperformed its close competitor The Coca-Cola Company's gain of 15.2% in the year-to-date period. PEP also lagged other industry peers, including Monster Beverage +14.2% growth.
PepsiCo trades below the 50-day and 200-day simple moving averages, indicating a bearish sentiment.
The Zacks Consensus Estimate for PepsiCo's 2025 EPS moved down 4.1% in the last 30 days. The negative estimate revision trend reflects analysts' concerns about the impacts of tariffs on the company's results. The consensus estimate for 2026 EPS has moved down 4.7% in the past 30 days. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
For 2025, the Zacks Consensus Estimate for PEP's sales implies year-over-year growth of 0.4%, whereas the EPS estimate suggests a decline of 2.8%. The consensus mark for 2026 sales and earnings indicates 3.3% and 5.7% year-over-year increases, respectively.
PepsiCo has faced a series of headwinds that have weighed on its share price over the past year, most notably persistent soft top-line trends and ongoing challenges within its North America operations dating back to early 2024. The recent drop to a 52-week low also mirrors the company's more cautious outlook and the muted tone of its first-quarter 2025 earnings update.
Management highlighted rising global macroeconomic volatility, particularly concerning trade dynamics, as a key pressure point. This environment is expected to significantly increase supply-chain costs, driven by factors such as tariffs and difficulties in sourcing critical global inputs. Without successful cost containment, these pressures can erode margins and weigh on earnings throughout the year.
Adding to the uncertainty, consumer demand remains sluggish across many key markets. High inflation continues to constrain household spending, leading to more price-sensitive behavior and reduced discretionary spending, especially in categories like snacks. While PepsiCo has introduced more value-oriented offerings focused on flavor, functionality and portion control, consumer engagement has yet to fully rebound.
In response, the company is actively pursuing mitigation strategies aimed at controlling costs while maintaining operational stability and safeguarding customer relationships. Strategic initiatives include enhancing international expansion and revitalizing performance in North America through ongoing productivity programs rooted in automation, standardization and digital transformation.
Despite these efforts, PepsiCo has revised its full-year guidance. It expects core constant-currency EPS to be flat year over year, down from the previously mentioned mid-single-digit rise. Organic revenue are projected to rise in the low-single-digit range, reflecting the increasingly complex and constrained operating environment.
PepsiCo is currently trading at a forward 12-month P/E ratio of 16.16X, below the industry average of 18.67X and the S&P 500's average of 20.81X.
At 16.16X P/E, PepsiCo is trading at a valuation much lower than its competitors. Its competitors, such as Coca-Cola, Monster Beverage and Keurig, are delivering solid growth and trade at higher multiples. Coca-Cola, Monster Beverage and Keurig have forward 12-month P/E ratios of 23.54X, 31.34X and 16.35X — all significantly higher than PepsiCo.
Although PEP's stock valuation is currently lower than that of its industry peers, this gap might not be as advantageous as it appears. The lower price can signal underlying issues rather than presenting a straightforward investment opportunity.
Investing in the PEP stock demands a measured and strategic outlook, especially in light of ongoing headwinds within its North American operations and persistent macroeconomic pressures. Recent market signals point to limited visibility for a near-term turnaround in the North America region, while the company's updated guidance underscores the continued impacts of inflation and global trade-related tariffs on its margins and earnings outlook.
Although PEP is trading at a discounted price-to-earnings ratio relative to the industry average, making it appear attractively valued on the surface, this discount may reflect broader investor concerns. A negative trend in earnings estimate revisions and bearish technical signals suggest that caution is warranted.
For investors considering entry, it may be prudent to wait for more concrete signs of stabilization or growth momentum. As it stands, with a Zacks Rank #4 (Sell), PepsiCo remains a stock to watch—but not necessarily to buy—until clearer recovery indicators emerge.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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CocaCola Company (The) (KO) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Helen of Troy Limited (HELE) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
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