Back to top

Image: Bigstock

AngloGold Ashanti (AU) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

AngloGold Ashanti (AU - Free Report) closed the most recent trading day at $24.19, moving -1.95% from the previous trading session. This change lagged the S&P 500's 0.8% gain on the day. Meanwhile, the Dow experienced a rise of 1.51%, and the technology-dominated Nasdaq saw a decrease of 0.01%.

Shares of the gold miner witnessed a gain of 6.61% over the previous month, beating the performance of the Basic Materials sector with its gain of 3.46% and the S&P 500's gain of 4.14%.

Market participants will be closely following the financial results of AngloGold Ashanti in its upcoming release. At the same time, our most recent consensus estimate is projecting a revenue of $1.22 billion, reflecting a 18.9% rise from the equivalent quarter last year.

AU's full-year Zacks Consensus Estimates are calling for earnings of $2.84 per share and revenue of $5.5 billion. These results would represent year-over-year changes of +2681.82% and +19.93%, respectively.

Any recent changes to analyst estimates for AngloGold Ashanti should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, AngloGold Ashanti is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that AngloGold Ashanti has a Forward P/E ratio of 8.69 right now. For comparison, its industry has an average Forward P/E of 16.03, which means AngloGold Ashanti is trading at a discount to the group.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 13, finds itself in the top 6% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next 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