AngloGold Ashanti (NYSE:AU) Combines High-Growth Momentum with Bullish Technical Setup

For investors looking to join solid fundamental growth with well-timed technical entry points, a multi-factor screening method can be especially effective. One useful technique is to search for stocks that show high earnings momentum, sound technical health, and a positive price consolidation pattern. This method tries to find companies that are not just increasing at a fast rate but are also situated in a positive chart structure, possibly providing a more defined risk-reward scenario for entry. A screen that combines a high ChartMill High Growth Momentum Rating (HGM) with firm Technical (TA) and Setup Ratings can reveal these chances, concentrating on the "when" just as much as the "what."

ANGLOGOLD ASHANTI PLC (NYSE:AU) recently showed on such a scan, presenting a strong case for high-growth momentum investors who also value technical discipline.

Fundamental Growth Momentum

The center of the high-growth momentum method is finding companies with speeding business performance, and AngloGold Ashanti's latest metrics display several good signals. Its High Growth Momentum Rating of 6 shows firmness across important growth and momentum measures.

• Strong Earnings Growth: The company's trailing twelve-month (TTM) EPS has increased by over 517% year-over-year. More significantly, this solid growth has displayed recent speeding, with the last quarter's EPS rising 163% against the same quarter a year before, up from 120% growth in the previous quarter.
• Firm Forward Estimates: Analyst projections point to continued momentum, with EPS for the coming quarter estimated to grow nearly 137% year-over-year.
• Margin Improvement and Cash Flow Jump: A sign of good growth is growing profitability. AngloGold's profit margin has step-by-step gotten better in recent quarters, reaching about 27.7% in the last reported quarter. Also, its free cash flow per share has climbed greatly, growing by over 1,300% in the past year, signaling firm cash generation from its operations.
• Positive Revisions: Analysts have been increasing their estimates, with the average EPS forecast for the next fiscal year adjusted upward by about 5.9% over the last three months. This upward revision pattern is a key momentum element, as it frequently comes before further price gains.

These fundamental elements, speeding earnings, growing margins, and positive analyst sentiment, are exactly what the HGM rating tries to capture, making AU a candidate for growth-focused investors.

Technical Strength and Setup Quality

While firm fundamentals give the "why," technical analysis provides the "when." According to the detailed technical report, AngloGold Ashanti performs well here too, receiving a perfect TA Rating of 10 and a firm Setup Rating of 8.

• Firm Uptrend: The stock is in a confirmed uptrend across both short-term and long-term periods. It is trading above all key moving averages (20, 50, 100, and 200-day SMAs), which are all increasing, a clear sign of continued positive momentum.
• Market Outperformance: With a relative strength percentile ranking of 98.3, AU has done better than almost all other stocks in the market over the past year. It also does better than 90% of its group in the Metals & Mining industry.
• Positive Consolidation: The Setup Rating of 8 signals the stock has been consolidating its recent gains in a fairly narrow range. Over the past month, it has traded between about $79.36 and $93.85 and is currently testing the higher end of this range. This consolidation above a clear support area, noted near $88.93, helps outline a possible risk level.
• Breakout Chance: The technical analysis notes a recent "Pocket Pivot" signal, a volume-based indicator often linked with institutional accumulation during a pause in the trend. With very little overhead resistance, a move above the recent consolidation high could signal the next step up in the trend.

This mix of a flawless long-term trend and a current, well-outlined consolidation phase is what the TA and Setup Ratings are made to find, offering a tactical entry plan for investors who have already been drawn by the fundamental story.

A Merging Chance

AngloGold Ashanti presents a situation where solid fundamental momentum meets a technically positive chart pattern. For investors using a growth momentum method, the company's speeding earnings, climbing cash flow, and positive estimate revisions give a firm foundational thesis. The technical picture then adds a layer of tactical accuracy, suggesting the stock is not just growing but is doing so within a positive uptrend and may be set for a continuation move after a time of consolidation.

This combined view, fundamental momentum plus technical setup, is the core of the screening method that found AU. It tries to avoid following extended stocks by waiting for them to form actionable patterns, thus aiming to better the timing of entry into high-growth names.

Find More Possible Setups

The screen that found AngloGold Ashanti is made to find other stocks where firm growth momentum meets positive technical setups. You can run this screen yourself and see the current results by following this link: High Growth Momentum Breakout Setups Screen.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis presented is based on data provided and should not be the sole basis for any investment decision. Always conduct your own due diligence and consider consulting with a qualified financial advisor before making any investment.