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Asanko Gold (GAU) Gains As Market Dips: What You Should Know

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Asanko Gold (GAU - Free Report) closed at $1.16 in the latest trading session, marking a +1.75% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 1.25%.

Heading into today, shares of the gold mining company had gained 1.79% over the past month, lagging the Basic Materials sector's gain of 15.57% and the S&P 500's gain of 3.42% in that time.

GAU will be looking to display strength as it nears its next earnings release.

Any recent changes to analyst estimates for GAU should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant within the past month. GAU is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, GAU currently has a Forward P/E ratio of 6.33. This represents a discount compared to its industry's average Forward P/E of 11.78.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 6% 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.

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


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