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AngloGold Ashanti (AU) Dips More Than Broader Market: What You Should Know

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AngloGold Ashanti (AU - Free Report) closed the most recent trading day at $73.45, moving -1.5% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.

Coming into today, shares of the gold miner had gained 11.13% in the past month. In that same time, the Basic Materials sector gained 0.02%, while the S&P 500 gained 1.14%.

The investment community will be closely monitoring the performance of AngloGold Ashanti in its forthcoming earnings report. In that report, analysts expect AngloGold Ashanti to post earnings of $1.34 per share. This would mark year-over-year growth of 139.29%. Alongside, our most recent consensus estimate is anticipating revenue of $2.53 billion, indicating a 69.87% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.31 per share and revenue of $9.32 billion. These totals would mark changes of +140.27% and +60.96%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for AngloGold Ashanti. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection remained stagnant. AngloGold Ashanti is holding a Zacks Rank of #1 (Strong Buy) right now.

In the context of valuation, AngloGold Ashanti is at present trading with a Forward P/E ratio of 14.04. This valuation marks a discount compared to its industry average Forward P/E of 16.28.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 35, positioning it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow AU in the coming trading sessions, be sure to utilize Zacks.com.


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