AngloGold Ashanti (AU) Rises As Market Takes a Dip: Key Facts

Core Viewpoint - AngloGold Ashanti is experiencing significant growth in its stock performance and earnings projections, indicating a strong position in the gold mining sector despite a current Zacks Rank of 5 (Strong Sell) [6]. Company Performance - AngloGold Ashanti's stock closed at $66.31, reflecting a 1.16% increase from the previous trading session, outperforming the S&P 500's loss of 0.05% [1]. - Over the past month, shares have appreciated by 19.81%, significantly outpacing the Basic Materials sector's gain of 7.06% and the S&P 500's gain of 3.44% [1]. Earnings Projections - The upcoming earnings report is projected to show earnings per share (EPS) of $1.21, representing a 116.07% increase year-over-year [2]. - Revenue is expected to reach $2.42 billion, indicating a 62.12% increase compared to the same quarter last year [2]. - For the entire year, the Zacks Consensus Estimates forecast earnings of $4.96 per share and revenue of $9.01 billion, reflecting increases of 124.43% and 55.59% respectively [3]. Analyst Estimates - Recent changes to analyst estimates for AngloGold Ashanti are crucial for investors, as upward revisions indicate positive sentiment regarding the company's business operations [4]. - The Zacks Rank system, which incorporates estimate changes, currently ranks AngloGold Ashanti at 5 (Strong Sell), despite its historical outperformance of 1 ranked stocks yielding an average annual return of +25% since 1988 [6]. Valuation Metrics - AngloGold Ashanti has a Forward P/E ratio of 13.22, which is lower than the industry average of 14.85, suggesting it is trading at a discount compared to its peers [7]. - The Mining - Gold industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [7]. Industry Insights - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8].