A strong stock as of late has been New Gold (NGD). Shares have been marching higher, with the stock up 35.8% over the past month. The stock hit a new 52-week high of $5.72 in the previous session. New Gold has gained 129.4% since the start of the year compared to the 17.6% gain for the Zacks Basic Materials sector and the 81.7% return for the Zacks Mining - Gold industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 28, 2025, New Gold reported EPS of $0.11 versus consensus estimate of $0.1.
For the current fiscal year, New Gold is expected to post earnings of $0.48 per share on $1.41 in revenues. This represents a 140% change in EPS on a 52.62% change in revenues. For the next fiscal year, the company is expected to earn $0.82 per share on $2.06 in revenues. This represents a year-over-year change of 72.4% and 45.85%, respectively.
Valuation Metrics
Though New Gold has recently hit a 52-week high, what is next for New Gold? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
New Gold has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.4X. On a trailing cash flow basis, the stock currently trades at 11.2X versus its peer group's average of 12.5X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, New Gold currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if New Gold passes the test. Thus, it seems as though New Gold shares could have a bit more room to run in the near term.
How Does NGD Stack Up to the Competition?
Shares of NGD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Agnico Eagle Mines Limited (AEM). AEM has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. Agnico Eagle Mines Limited beat our consensus estimate by 6.01%, and for the current fiscal year, AEM is expected to post earnings of $6.94 per share on revenue of $10.82 billion.
Shares of Agnico Eagle Mines Limited have gained 13.1% over the past month, and currently trade at a forward P/E of 20.11X and a P/CF of 19.27X.
The Mining - Gold industry is in the top 33% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NGD and AEM, even beyond their own solid fundamental situation.
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New Gold Inc. (NGD): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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