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AngloGold Ashanti (AU) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw AngloGold Ashanti (AU - Free Report) ending at $28.63, denoting a -1.07% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.78% for the day. On the other hand, the Dow registered a loss of 1.29%, and the technology-centric Nasdaq decreased by 0.7%.

Prior to today's trading, shares of the gold miner had gained 26.65% over the past month. This has outpaced the Basic Materials sector's gain of 1.42% and the S&P 500's gain of 2.14% in that time.

The upcoming earnings release of AngloGold Ashanti will be of great interest to investors. The company is predicted to post an EPS of $0.51, indicating a 200% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.23 billion, showing a 6.23% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.29 per share and revenue of $5.08 billion, indicating changes of +2181.82% and +10.78%, respectively, compared to the previous 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.17% lower. As of now, AngloGold Ashanti holds a Zacks Rank of #5 (Strong Sell).

With respect to valuation, AngloGold Ashanti is currently being traded at a Forward P/E ratio of 12.64. This denotes a discount relative to the industry's average Forward P/E of 16.5.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 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.

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


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