In the latest trading session, New Gold (NGD) closed at $9.33, marking a +2.75% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.09%.
The gold mining company's shares have seen an increase of 15.82% over the last month, surpassing the Basic Materials sector's gain of 9.22% and the S&P 500's gain of 2.57%.
The investment community will be paying close attention to the earnings performance of New Gold in its upcoming release. The company is expected to report EPS of $0.28, up 300% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and a revenue of $0 million, representing changes of +190% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for New Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.16% higher. New Gold is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, New Gold is presently being traded at a Forward P/E ratio of 15.65. This indicates a discount in contrast to its industry's Forward P/E of 17.73.
The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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New Gold Inc. (NGD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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