AngloGold Ashanti (AU) closed the most recent trading day at $78.42, moving -3.39% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Heading into today, shares of the gold miner had gained 3.28% over the past month, outpacing the Basic Materials sector's loss of 3.33% and the S&P 500's gain of 0.42%.
The upcoming earnings release of AngloGold Ashanti will be of great interest to investors. The company's upcoming EPS is projected at $2.02, signifying a 61.60% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.2 billion, up 32.95% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.23 per share and a revenue of $12.09 billion, indicating changes of +53.26% and +24.22%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for AngloGold Ashanti. 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 11.12% fall in the Zacks Consensus EPS estimate. AngloGold Ashanti is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, AngloGold Ashanti is currently trading at a Forward P/E ratio of 9.86. For comparison, its industry has an average Forward P/E of 10.12, which means AngloGold Ashanti is trading at a discount to the group.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 232, this industry ranks in the bottom 6% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow AU in the coming trading sessions, be sure to utilize Zacks.com.
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AngloGold Ashanti PLC (AU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).