Core Insights - AngloGold Ashanti plc (AU) is focusing on streamlining operations and prioritizing core assets, particularly in the United States, with a recent sale of its interest in the Mineração Serra Grande mine in Brazil for $76 million [1][11] - The Mineração Serra Grande mine is the smallest operation by production for AngloGold Ashanti but is one of its higher-cost assets, and divesting it allows for better resource allocation towards more productive operations [2][11] - The company has also sold interests in two gold projects in Côte d'Ivoire to Resolute Mining Limited, indicating a strategic shift towards higher-priority development assets [3][4] Financial Position - AngloGold Ashanti's financial position has significantly improved, with the adjusted net debt to adjusted EBITDA ratio decreasing to 0.15X in Q1 2025 from 0.86X in Q1 2024, and the company ended the quarter with $3 billion in liquidity [5][11] - The Zacks Consensus Estimate for AU's 2025 sales is projected at $8.85 billion, reflecting a year-over-year growth of 52.8%, while earnings are expected to be $4.99 per share, indicating a 125.8% increase year-over-year [13] Production and Strategy - The company aims to implement the underhand drift and fil UHDF mining method at Obuasi, targeting an annual production of around 400,000 ounces at competitive costs by 2028 [6] - Portfolio optimization remains a key priority for AngloGold Ashanti, as evidenced by its recent divestitures and focus on enhancing operational efficiency [5][11] Market Performance - AngloGold Ashanti's stock has appreciated by 44.5% year to date, outperforming the Zacks Mining – Gold industry growth of 23.6% [10] - The company is currently trading at a forward 12-month earnings multiple of 9.68X, which is below the industry average of 12.87X, indicating potential value [12]

Group 1 - AngloGold Ashanti's stock closed at $46.40, down 3.93% from the previous trading session, underperforming the S&P 500, which gained 1.11% [1] - The stock has increased by 9.67% over the past month, outperforming the Basic Materials sector's gain of 2.17% and the S&P 500's gain of 3.92% [1] Group 2 - The upcoming earnings disclosure for AngloGold Ashanti is anticipated, with projected earnings per share (EPS) of $1.29, reflecting a 115% increase year-over-year, and revenue expected to be $2.29 billion, a 66% increase compared to the same quarter last year [2] - For the entire fiscal year, earnings are predicted to be $4.91 per share and revenue at $8.75 billion, indicating increases of 122.17% and 51.09% respectively from the previous year [3] Group 3 - Recent analyst estimate revisions for AngloGold Ashanti suggest confidence in the company's business performance and profit potential [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks AngloGold Ashanti as 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [5] Group 4 - AngloGold Ashanti's Forward P/E ratio is 9.84, which is lower than the industry average Forward P/E of 13.02, indicating a potential valuation discount [6] - The Mining - Gold industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [6][7]

Key Takeaways Gold prices have been on the rise over the past several months, which has given a boost to stocks linked to gold mining. Rising geopolitical tensions, especially the ongoing tensions in the Middle East between Iran and Israel, with the United States now having joined the conflict, have been helping gold prices. Given the current situation, investing in gold mining stocks such as Royal Gold, Inc. (RGLD) , Franco- Nevada Corporation (FNV) , Harmony Gold Mining Company Limited (HMY) and AngloGold ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AngloGold Ashanti (AU), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Group 1: Brokerage Recommendations - AngloGold Ashanti has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from six brokerage firms [2]. - Among the six recommendations, three are classified as Strong Buy and one as Buy, representing 50% and 16.7% of total recommendations respectively [2]. - Despite the positive ABR, the article cautions against relying solely on brokerage recommendations due to their historical limited success in guiding investors towards stocks with the best price increase potential [5][10]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Consensus Estimate for AngloGold Ashanti has increased by 13.9% over the past month to $4.91, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for AngloGold Ashanti, suggesting a strong potential for stock price appreciation [14].

Industry Overview - Gold prices have been on an upward trend, influenced by geopolitical tensions in the Middle East and ongoing conflicts in Ukraine, which have increased demand for gold as a safe-haven investment [1][2] - The World Gold Council indicates a scarcity of gold deposits in the mining industry, while central banks in emerging economies continue to purchase gold, further driving demand [4] - Major investment banks like Goldman Sachs and JP Morgan predict gold prices could reach $4,000 per ounce by 2026, indicating a bullish outlook for the gold market [5] Company Highlights Franco-Nevada Corp. (FNV) - FNV is expected to achieve a 39.6% earnings growth in 2025, with a 3.7% increase in earnings estimates over the last 30 days [8][11] - The company has a debt-free balance sheet and focuses on expanding its portfolio and paying dividends, benefiting from rising gold prices [10] - Expected revenue growth rate for FNV is 32.2% for the current year [11] Newmont Corp. (NEM) - NEM is progressing with growth projects, including the Tanami expansion and the Ahafo North project, which is set to begin commercial production in the second half of 2025 [12][13] - The company has an expected revenue growth rate of 2% and earnings growth rate of 20.1% for the current year, with a 6.6% improvement in earnings estimates over the last 30 days [13] Kinross Gold Corp. (KGC) - KGC is focusing on organic growth through its Tasiast mine and has several promising projects that are expected to enhance production and cash flow [14][15] - The company anticipates a 15.3% revenue growth and a 63.2% earnings growth for the current year, with a 6.7% increase in earnings estimates over the last 30 days [16] AngloGold Ashanti plc (AU) - AU operates in multiple regions and has a flagship property in Tanzania, with an expected revenue growth rate of 51.1% and earnings growth of over 100% for the current year [17][18] - The Zacks Consensus Estimate for current-year earnings has improved by 41.1% over the last 30 days [18] Harmony Gold Mining Co. Ltd. (HMY) - HMY is advancing key projects like the Wafi-Golpu copper-gold deposit and the Eva Copper project, which are expected to enhance production significantly [19][20] - The company has an expected revenue growth rate of 1% and earnings growth of over 100% for the current year, with a 22.2% improvement in earnings estimates over the last 30 days [21]

Company Overview - AngloGold Ashanti currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical outperformance in the market [4] Price Performance - Over the past week, shares of AngloGold Ashanti have increased by 4.91%, outperforming the Zacks Mining - Gold industry, which rose by 3.21% [6] - The monthly price change for AngloGold Ashanti is 15.05%, compared to the industry's 13.76% [6] - Over the past quarter, shares have increased by 29.14%, and over the last year, they have gained 96.87%, significantly outperforming the S&P 500, which moved 8.49% and 13.75% respectively [7] Trading Volume - The average 20-day trading volume for AngloGold Ashanti is 2,700,384 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for AngloGold Ashanti have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.49 to $5.16 [10] - For the next fiscal year, two estimates have also moved upwards, indicating positive sentiment regarding future earnings [10] Conclusion - Given the strong momentum indicators, price performance, and positive earnings outlook, AngloGold Ashanti is positioned as a solid momentum pick for investors [12]

Company Performance - AngloGold Ashanti closed at $45.87, with a +1.68% increase from the previous day, outperforming the S&P 500's daily loss of 0.27% [1] - The stock has appreciated by 9.46% over the past month, surpassing the Basic Materials sector's gain of 4.76% and the S&P 500's gain of 6.9% [1] Earnings Estimates - Zacks Consensus Estimates project earnings of $5.16 per share and revenue of $8.92 billion for the full year, representing increases of +133.48% and +53.94% from the previous year, respectively [2] Analyst Forecasts - Recent revisions to analyst forecasts for AngloGold Ashanti should be monitored, as positive estimate revisions indicate analyst optimism regarding business and profitability [3] Valuation Metrics - AngloGold Ashanti has a Forward P/E ratio of 8.74, which is a discount compared to the industry average Forward P/E of 12.71 [6] - The Mining - Gold industry is part of the Basic Materials sector, holding a Zacks Industry Rank of 40, placing it in the top 17% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that AngloGold Ashanti currently holds a Zacks Rank of 1 (Strong Buy) [5] - The Zacks Consensus EPS estimate has increased by 48.49% in the past month, reflecting positive sentiment [5]

Market Overview & Investment Strategy - The podcast focuses on growth stocks, noting a potential breakout in the S&P 500 in the summer of 2025 following a trade war selloff [1] - Zacks' premium screens, which utilize the Zacks Rank, are highlighted as a tool for identifying promising growth stocks [3][4] - The podcast aims to explore growth stocks using Zacks' screening tools, offering insights into both basic and premium screening options [2][3] Featured Stocks & Analysis - **Apploving (AP)**: A technology platform in the advertising sector with a market cap of $136 billion, showing strong earnings growth and positive analyst revisions [22][37][43] - **Anglo Gold Ashanti (AU)**: A gold mining company with a market cap of $19.9 billion, benefiting from rising gold prices and showing significant earnings growth [23][49] - **Birkenstock (BIRK)**: A shoe manufacturer with a market cap of $10 billion, demonstrating strong sales and earnings growth despite potential tariff concerns [23][57] - **Cyber Arc Software (CYBR)**: A cyber security company with a market cap of $19.5 billion, experiencing robust growth in a booming industry [25][63] - **European Wax Center (EWCZ)**: A personal care franchise with a smaller market cap of $284 million, showing potential for growth and value combination [26][67] - **NB Bankore (NBBK)**: A regional bank with a market cap of $676 million, exhibiting growth in earnings and revenue, and considered undervalued with a low price-to-book ratio [28][73] Key Metrics & Financial Highlights - Apploving's sales are expected to grow by 243% in 2025, with earnings up by 852% [43] - Anglo Gold Ashanti's 2025 estimates show a 95% increase, driven by rising gold prices [50] - Birkenstock's PEG ratio is 11%, indicating reasonable growth at 28 times earnings [57] - Cyber Arc Software's earnings growth is projected at 170% for 2025, with sales also in double digits [63] - European Wax Center's forward PE is 84%, with a PEG of 46, indicating a value PEG [71] - NB Bankore has a price-to-book ratio of 094, suggesting it is undervalued [77]

Core Viewpoint - AngloGold Ashanti plc has reached a new 52-week high of $47.77 following the announcement of the sale of its interest in the Mineração Serra Grande mine to Aura Minerals Inc, which is aimed at optimizing its portfolio [1]. Financial Details of the Deal - The sale of Mineração Serra Grande S.A. to Aura will be for a cash consideration of $76 million, subject to working capital adjustments at closing. Additionally, AngloGold Ashanti will receive deferred payments equivalent to a 3% net smelter returns royalty on the mine's current mineral resources [2][7]. Strategic Decision - The MSG mine, located in Goiás, includes three mechanized underground mines and an open pit, with a dedicated metallurgical plant having an annual capacity of 1.5 million tons. Recent priorities have included stabilizing operations and decommissioning the legacy tailings storage facility [3]. Production and Cost Analysis - The MSG mine produced 80,000 ounces of gold in 2024 and 86,000 ounces in 2023. It is characterized as one of AngloGold Ashanti's higher-cost and lower-production operations, and the sale is expected to enhance capital allocation and operational efficiencies [4][7]. Transaction Details - The transaction will exclude subsidiaries of Mineração Serra Grande S.A. that hold non-core assets, which will be retained by AngloGold Ashanti and transferred out through a spin-off before closing. The deal is anticipated to close in the third quarter of 2025, pending closing conditions [5]. Stock Performance - AngloGold Ashanti's shares have increased by 100.6% over the past year, significantly outperforming the industry average growth of 42.9% [6].

Market Overview - Wall Street experienced significant gains in May, with the S&P 500 increasing by 6.2% and the Nasdaq rising by 9.6%, marking the best month for both indices since late 2023 [1] - Investor optimism was fueled by a temporary pause on new trade tariffs announced by Trump, alleviating fears regarding trade tensions with China and the EU [1] Geopolitical Risks - Despite the temporary relief, the threat of tariffs remains, as China accused the U.S. of violating their trade truce by tightening controls on AI chip exports and student visas, which has raised tensions again [2] - The interconnectedness of the U.S. and Chinese economies means that even minor disputes can significantly impact market stability [2] Investment Strategy - In uncertain times, investors are turning to value investing, focusing on companies with strong fundamentals that are undervalued [3] - Value stocks with high earnings yield can provide attractive returns, especially during periods of market volatility [4] Earnings Yield - Earnings yield is calculated by dividing a company's annual earnings per share (EPS) by its current stock price, indicating potential returns for investors [5] - A higher earnings yield suggests a stock may be undervalued compared to its peers, while a lower yield may indicate overvaluation [5][7] Stock Screening Criteria - A primary screening criterion for selecting stocks is an earnings yield greater than 10%, supplemented by estimated EPS growth, average daily volume, and current price thresholds [8][9][10] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are expected to outperform their peers [10] Selected Value Stocks - Five value stocks with earnings yields exceeding 10% have been identified as appealing options amid rising U.S.-China tensions: AngloGold Ashanti (AU), Orchid Island Capital (ORC), LATAM Airlines (LTM), Priority Technology (PRTH), and Allianz (ALIZY) [11] - All five stocks show strong projected EPS growth through 2026 and meet liquidity, price, and growth criteria [11] Company Highlights - **AngloGold Ashanti (AU)**: Expected earnings growth of 95% in 2025 and 6.7% in 2026, with a Zacks Rank of 1 and a Value Score of A [12] - **Orchid Island Capital (ORC)**: Projected earnings growth of 394% in 2025 and 24.5% in 2026, Zacks Rank 1, Value Score B [13] - **LATAM Airlines (LTM)**: Anticipated earnings growth of 27.5% in 2025 and 20% in 2026, Zacks Rank 1, Value Score A [14] - **Priority Technology (PRTH)**: Expected earnings growth of 108% in 2025 and 34% in 2026, Zacks Rank 1, Value Score A [15] - **Allianz (ALIZY)**: Projected earnings growth of 16.4% in 2025 and 9% in 2026, Zacks Rank 1, Value Score B [16]