AngloGold Ashanti Limited (AU) Provides Great Yield, Safety, And Price Upside

The price of AngloGold Ashanti Limited (NYSE:AU) stock ended January 13, 2020 trading at $20.65 which saw uptrend of -7.56% since the beginning of 2020. For most investors, the -5.58% rally in the share price could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.

A look at the AU stock today shows that it has gained 64.02% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of AngloGold Ashanti Limited (NYSE:AU). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for AngloGold Ashanti Limited (AU) is 2.4 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 3 times while it has been rated as a Hold 0 times. The 52-week high price for AU is $23.85 which is attained on August 28 while its 52-week low currently stands at $11.29 and was reached on May 17. At the moment, the stock is trading $-1.37 below its YTD moving average set at $22.02.

In order to determine if the stock is worthy of your patience, you should know that AngloGold Ashanti Limited (NYSE:AU) is now trading at 40.33X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 21.95X while the industry average stands at 27.76X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. AngloGold Ashanti Limited was able to achieve an EPS of $0.51 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, January 13 of 2020, the 14-day Absolute ATR (Average True Range) for AU moved by $0.83. Over the past seven days, the stock’s average daily volatility stood at 3.58%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. AngloGold Ashanti Limited’s trading volume has recently moved to 2.58 million, which is compared with the average daily volume of 2.66 million shares.

The daily chart for AU, points out that the company has recorded 14.21% gains over the past six months. However, it is still 82.91% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is down -9.11% though it is -2.95% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 1.78% while it is up 15.17% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of AU reveals that it has gained some grounds as it ended Monday with a 0.73% rise over the past 30 days.