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AngloGold Ashanti (AU) Stock Drops Despite Market Gains: Important Facts to Note

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AngloGold Ashanti (AU - Free Report) closed the most recent trading day at $50.52, moving -1.1% from the previous trading session. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.18%.

Shares of the gold miner witnessed a gain of 9.97% over the previous month, beating the performance of the Basic Materials sector with its gain of 5.21%, and the S&P 500's gain of 5.71%.

The upcoming earnings release of AngloGold Ashanti will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 118.33% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, up 67.73% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.99 per share and a revenue of $8.85 billion, representing changes of +125.79% and +52.81%, respectively, from the prior year.

Any recent changes to analyst estimates for AngloGold Ashanti should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.56% higher. At present, AngloGold Ashanti boasts a Zacks Rank of #1 (Strong Buy).

Digging into valuation, AngloGold Ashanti currently has a Forward P/E ratio of 10.24. This expresses a discount compared to the average Forward P/E of 11.91 of its industry.

The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 23, placing it within the top 10% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.


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