In the latest close session, New Gold (NGD) was down 1.68% at $9.36. The stock fell short of the S&P 500, which registered a loss of 0.34% for the day. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq added 0.16%.
Heading into today, shares of the gold mining company had gained 22.05% over the past month, outpacing the Basic Materials sector's gain of 6.26% and the S&P 500's gain of 1.19%.
The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. The company's upcoming EPS is projected at $0.28, signifying a 300.00% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.58 per share and revenue of $0 million. These totals would mark changes of +190% and 0%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for New Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, New Gold is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that New Gold has a Forward P/E ratio of 8.63 right now. This expresses a discount compared to the average Forward P/E of 12.74 of its industry.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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