New Gold (NGD) ended the recent trading session at $2.89, demonstrating a +0.7% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.47% loss on the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.51%.
Coming into today, shares of the gold mining company had gained 15.73% in the past month. In that same time, the Basic Materials sector gained 1.28%, while the S&P 500 gained 1.67%.
Market participants will be closely following the financial results of New Gold in its upcoming release. The company is expected to report EPS of $0.05, up 600% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for New Gold. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.62% increase. New Gold presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, New Gold is presently trading at a Forward P/E ratio of 10.16. This represents no noticeable deviation compared to its industry's average Forward P/E of 10.16.
The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 131, placing it within the bottom 48% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 Report
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