Are Investors Undervaluing AngloGold Ashanti PLC (AU) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is AngloGold Ashanti PLC (AU). AU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.35, while its industry has an average P/E of 16.93. Over the past year, AU's Forward P/E has been as high as 18.51 and as low as 9.04, with a median of 11.81.
Investors will also notice that AU has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AU's industry has an average PEG of 1.04 right now. Over the last 12 months, AU's PEG has been as high as 4.92 and as low as 0.39, with a median of 0.61.
Value investors will likely look at more than just these metrics, but the above data helps show that AngloGold Ashanti PLC is likely undervalued currently. And when considering the strength of its earnings outlook, AU sticks out at as one of the market's strongest value stocks.
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AngloGold Ashanti PLC (AU) : Free Stock Analysis Report
