AngloGold Ashanti (AU) closed at $91.06 in the latest trading session, marking a -1.81% move from the prior day. This change lagged the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
Prior to today's trading, shares of the gold miner had gained 12.64% outpaced the Basic Materials sector's gain of 5.26% and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of AngloGold Ashanti in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.9, reflecting a 113.48% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.03 billion, up 73.03% from the year-ago period.
AU's full-year Zacks Consensus Estimates are calling for earnings of $5.51 per share and revenue of $9.85 billion. These results would represent year-over-year changes of +149.32% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for AngloGold Ashanti. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 shifted 21.41% upward. As of now, AngloGold Ashanti holds a Zacks Rank of #3 (Hold).
In terms of valuation, AngloGold Ashanti is currently trading at a Forward P/E ratio of 11.88. Its industry sports an average Forward P/E of 12.81, so one might conclude that AngloGold Ashanti is trading at a discount comparatively.
The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 34% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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AngloGold Ashanti PLC (AU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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