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AngloGold Ashanti (AU) Ascends But Remains Behind Market: Some Facts to Note

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In the latest trading session, AngloGold Ashanti (AU - Free Report) closed at $33.24, marking a +0.24% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.04% for the day. Meanwhile, the Dow experienced a rise of 0.77%, and the technology-dominated Nasdaq saw an increase of 1.51%.

Shares of the gold miner witnessed a gain of 22% over the previous month, beating the performance of the Basic Materials sector with its gain of 7.68% and the S&P 500's gain of 3.92%.

The investment community will be paying close attention to the earnings performance of AngloGold Ashanti in its upcoming release.

It's also important for investors to be aware of any recent modifications to analyst estimates for AngloGold Ashanti. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 24.96% higher. AngloGold Ashanti currently has a Zacks Rank of #1 (Strong Buy).

In the context of valuation, AngloGold Ashanti is at present trading with a Forward P/E ratio of 8.66. For comparison, its industry has an average Forward P/E of 11.92, which means AngloGold Ashanti is trading at a discount to the group.

The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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