Back to top

Image: Bigstock

AngloGold Ashanti (AU) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

AngloGold Ashanti (AU - Free Report) ended the recent trading session at $25.86, demonstrating a +1.77% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.09% gain on the day. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq gained 0.65%.

Coming into today, shares of the gold miner had gained 6.59% in the past month. In that same time, the Basic Materials sector gained 5.36%, while the S&P 500 gained 5.78%.

The investment community will be closely monitoring the performance of AngloGold Ashanti in its forthcoming earnings report. In the meantime, our current consensus estimate forecasts the revenue to be $1.22 billion, indicating a 18.9% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.84 per share and a revenue of $5.5 billion, signifying shifts of +2681.82% and +19.93%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for AngloGold Ashanti. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AngloGold Ashanti is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that AngloGold Ashanti has a Forward P/E ratio of 8.95 right now. For comparison, its industry has an average Forward P/E of 16.39, which means AngloGold Ashanti is trading at a discount to the group.

The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AngloGold Ashanti PLC (AU) - free report >>

Published in