ANGLOGOLD ASHANTI PLC (NYSE:AU) has appeared as an interesting option for investors using systematic growth and momentum strategies. The stock was recently identified by a screening method that joins Mark Minervini's strict Trend Template with high growth momentum standards. This two-part method finds companies displaying both solid technical price trends and good fundamental growth attributes, forming an effective filter for possible market leaders.
Technical Strength Through Minervini's Lens
ANGLOGOLD ASHANTI displays strong agreement with Minervini's Trend Template, which aims to find stocks in clear uptrends. The template's standards confirm chosen securities display momentum over various time periods and keep leading spots in their industries.
The stock fits a number of important technical standards:
- Current price ($66.67) trading above all main moving averages (50-day: $64.96, 150-day: $51.39, 200-day: $46.07)
- All moving averages moving upward, confirming continued positive momentum
- Price located 197% above its 52-week low of $22.45
- Trading within 17% of its 52-week high of $79.94
- Relative strength ranking of 95.46, showing it is doing better than 95% of the market
These technical features match Minervini's idea of concentrating on stocks showing clear leadership and momentum. The increasing moving averages over all time periods point to institutional buying, while the high relative strength shows the stock is performing much better than the wider market.
Notable Growth Momentum Fundamentals
Apart from technical strength, ANGLOGOLD ASHANTI displays strong fundamental growth that makes it suitable for high growth momentum investors. The company's financial numbers show a major change and quickening in profitability.
Important growth measures include:
- EPS growth (TTM) of 517% year-over-year
- Quarterly EPS growth of 120% compared to the same quarter last year
- Revenue growth (TTM) of 26.4% year-over-year
- Quarterly revenue growth of 77% year-over-year
- Profit margin increase to 27.4% in the most recent quarter
- Analyst EPS revisions for next year raised by 14.6% over three months
These fundamental gains are important within Minervini's structure, which stresses that "big earnings attract big attention." The major EPS growth and margin increase suggest the company has hit a turning point that could draw institutional interest and lead to continued price gains.
Mining Sector Leadership and Market Position
In the metals and mining industry, ANGLOGOLD ASHANTI displays clear leadership features. The company's varied portfolio across 11 operations in Africa, the Americas, and Australia offers geographic spread while keeping operational concentration. The stock's technical rating of 10 out of 10 and its better performance than 75% of industry competitors highlight its relative strength in the sector.
The company's better operational efficiency is seen in the increasing profit margins, which have grown from 14.96% three quarters ago to 27.36% in the most recent quarter. This margin increase, paired with large revenue and earnings growth, creates the kind of fundamental driver Minervini looks for when finding possible high performers.
Technical Analysis Summary
According to ChartMill's technical report, ANGLOGOLD ASHANTI keeps a very good technical rating of 10, reflecting solid price momentum and trend features. The stock displays steady performance over various time periods, with special strength in its long-term trend. While the setup quality rating is currently at 2 because of recent price swings, the basic technical condition remains good with clear support levels found between $45.11 and $66.66. The stock's high relative strength and location above all main moving averages suggest continued positive momentum in spite of recent price settling.
View the complete technical analysis report for detailed insights
Investment Considerations
For investors following growth and momentum strategies, ANGLOGOLD ASHANTI presents an interesting case of a company displaying both technical strength and fundamental quickening. The joining of Minervini's trend template agreement with high growth momentum features creates an interesting profile for more study. However, the recent price movement and lower setup quality score indicate possible investors could gain from waiting for a settling pattern to form before taking positions.
Discover more high growth momentum stocks meeting the Minervini Trend Template criteria
Disclaimer: This analysis is for informational and educational purposes only and does not constitute investment advice. All investments carry risk, and past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.
