New Gold (NGD) closed the most recent trading day at $11.17, moving -5.18% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 1.61%, and the tech-heavy Nasdaq lost 0.26%.
The gold mining company's stock has climbed by 15.26% in the past month, exceeding the Basic Materials sector's gain of 3.46% and the S&P 500's loss of 0.15%.
The investment community will be paying close attention to the earnings performance of New Gold in its upcoming release. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 285.71% increase from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.66 per share and revenue of $0 million. These totals would mark changes of +230% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for New Gold. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.84% higher. New Gold is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, New Gold is holding a Forward P/E ratio of 7.2. This denotes a discount relative to the industry average Forward P/E of 11.87.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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