AngloGold Ashanti (AU) closed the most recent trading day at $46.40, moving -3.93% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 1.43%.
The gold miner's stock has climbed by 9.67% in the past month, exceeding the Basic Materials sector's gain of 2.17% and the S&P 500's gain of 3.92%.
Analysts and investors alike will be keeping a close eye on the performance of AngloGold Ashanti in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.29, reflecting a 115% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.29 billion, showing a 66% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.91 per share and a revenue of $8.75 billion, indicating changes of +122.17% and +51.09%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for AngloGold Ashanti. Recent revisions tend to reflect the latest near-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.92% higher within the past month. AngloGold Ashanti presently features a Zacks Rank of #1 (Strong Buy).
Investors should also note AngloGold Ashanti's current valuation metrics, including its Forward P/E ratio of 9.84. This expresses a discount compared to the average Forward P/E of 13.02 of its industry.
The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 53, finds itself in the top 22% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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