Should You Invest in AngloGold Ashanti (AU) Based on Bullish Wall Street Views?

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].