AngloGold Ashanti (AU) is a Great Momentum Stock: Should You Buy?

Zacks Investment Research highlights AngloGold Ashanti (AU) as a strong momentum stock, currently holding a Zacks Rank #1 (Strong Buy) and a Momentum Style Score of B. AU's shares have significantly outperformed both its industry and the S&P 500, rising 49.14% in the past quarter and 81.24% in the last year, driven by positive earnings estimate revisions, with the full-year consensus increasing from $2.49 to $4.31 in the past 60 days.

Analysis

AngloGold Ashanti (AU) exhibits strong momentum characteristics, underpinned by its Zacks Rank #1 (Strong Buy) and a Momentum Style Score of B. The company's shares have demonstrated significant outperformance relative to both its industry and the broader market. Specifically, AU's stock price increased 8.1% over the past week, outpacing the Zacks Mining - Gold industry's 7.12% gain. Over a longer horizon, AU's shares rose 6.79% in the last month compared to the industry's 1.9% performance, surged 49.14% in the past quarter while the S&P 500 declined 2.26%, and achieved a notable 81.24% gain in the last year, substantially exceeding the S&P 500's 10.82% rise. This price appreciation is supported by an average 20-day trading volume of 2,791,248 shares. Crucially, the positive outlook is further substantiated by upward revisions in earnings estimates; for the full fiscal year, two earnings estimates were revised higher in the past two months with no downward revisions, boosting the consensus estimate from $2.49 to $4.31 in the past 60 days. Similar positive revision trends are observed for the next fiscal year, with two estimates moving upwards and none downwards during the same period, reinforcing the 'Strong Buy' thesis.

Key Decisions for Investors

• Investors seeking exposure to momentum stocks with strong near-term indicators may find AngloGold Ashanti (AU) an interesting candidate, given its Zacks Rank #1 (Strong Buy) and significant recent outperformance.
• Closely monitor future earnings estimate revisions for AU, as the recent substantial increase in the consensus estimate to $4.31 for the full year has been a key driver of its positive rating and price action.
• Consider the sustainability of AU's price rally, which includes a 49.14% quarterly gain and an 81.24% annual increase, in the context of overall market conditions and gold sector trends.