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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 at $47.46 in the latest trading session, marking a -1.06% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, added 0.18%.

The gold miner's stock has dropped by 3.44% in the past month, falling short of the Basic Materials sector's gain of 2.16% and the S&P 500's gain of 4.97%.

Investors will be eagerly watching for the performance of AngloGold Ashanti in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.31, indicating a 118.33% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.32 billion, indicating a 67.73% upward movement from the same quarter last year.

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.

Investors should also take note of any recent adjustments to analyst estimates for AngloGold Ashanti. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has moved 1.56% higher. AngloGold Ashanti is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, AngloGold Ashanti is presently being traded at a Forward P/E ratio of 9.62. Its industry sports an average Forward P/E of 13.31, so one might conclude that AngloGold Ashanti is trading at a discount comparatively.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 15, finds itself in the top 7% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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