AngloGold Ashanti Soars 4.69% on Buy Rating, Earnings Beat

AngloGold Ashanti (AU) surged 4.69% intraday, marking its highest level since May 2011, with a 4.14% increase over the past three days, totaling a 12.70% gain in the last three days.

The strategy of buying AU shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -0.8%, significantly underperforming the market. This indicates that relying on recent highs as a buying trigger and holding for a short duration is not a reliable strategy for AU.

Roth Capital initiated coverage on AngloGold Ashanti with a "Buy" rating and set a target price of $52, which contributed to a notable stock price increase. This positive rating from a reputable financial institution has bolstered investor confidence in the company's future prospects.

AngloGold Ashanti reported first-quarter revenue of $1.93 billion, surpassing analyst estimates of $1.86 billion. This strong financial performance has positively impacted its stock price, as investors recognize the company's ability to exceed expectations and deliver robust earnings.

AngloGold Ashanti's stock has shown strong momentum, with a Zacks Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy). Over the past two months, there have been upward revisions in earnings estimates, contributing to an increase in the consensus estimate from $2.49 to $5.16. This positive momentum and improved earnings outlook have further driven the stock's upward movement, reflecting investor optimism about the company's growth prospects.