In the latest close session, New Gold (NGD) was down 2.57% at $10.22. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
The gold mining company's stock has climbed by 10.19% in the past month, falling short of the Basic Materials sector's gain of 16.13% and outpacing the S&P 500's gain of 0.93%.
Analysts and investors alike will be keeping a close eye on the performance of New Gold in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.27, showcasing a 285.71% upward movement from the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.66 per share and a revenue of $0 million, indicating changes of +230% and 0%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for New Gold. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 35.04% higher. New Gold is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, New Gold currently has a Forward P/E ratio of 7.04. This denotes a discount relative to the industry average Forward P/E of 12.48.
The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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