New Gold (NGD) closed the most recent trading day at $4.99, moving +1.84% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.83%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.02%.
The gold mining company's stock has climbed by 4.48% in the past month, falling short of the Basic Materials sector's gain of 5.33% and the S&P 500's gain of 4.99%.
The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.1, reflecting a 400% increase from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.45 per share and revenue of $1.31 billion. These totals would mark changes of +125% and +41.81%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for New Gold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 14.1% higher within the past month. New Gold currently has a Zacks Rank of #2 (Buy).
In the context of valuation, New Gold is at present trading with a Forward P/E ratio of 11.01. For comparison, its industry has an average Forward P/E of 13.37, which means New Gold is trading at a discount to the group.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 19% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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