AngloGold Ashanti (AU) closed the most recent trading day at $81.91, moving +2.61% from the previous trading session. The stock’s performance was ahead of the S&P 500’s daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 1.3%.
Heading into today, shares of the gold miner had gained 1.73% over the past month, outpacing the Basic Materials sector’s loss of 4.72% and the S&P 500’s gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of AngloGold Ashanti in its upcoming earnings disclosure. The company is expected to report EPS of $2.02, up 61.6% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.2 billion, indicating a 32.95% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.91 per share and revenue of $12.24 billion, which would represent changes of +65.92% and +25.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for AngloGold Ashanti. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.81% lower within the past month. AngloGold Ashanti currently has a Zacks Rank of #3 (Hold).
In the context of valuation, AngloGold Ashanti is at present trading with a Forward P/E ratio of 8.96. This denotes a discount relative to the industry average Forward P/E of 8.98.
The Mining – Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 30% 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.
