New Gold (NGD) ended the recent trading session at $4.69, demonstrating a +0.43% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.32%.
Shares of the gold mining company have appreciated by 11.19% over the course of the past month, outperforming the Basic Materials sector’s gain of 4.05% and the S&P 500’s gain of 5.2%.
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Analysts and investors alike will be keeping a close eye on the performance of New Gold in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.08, indicating a 300% growth compared to the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.39 per share and a revenue of $1.31 billion, indicating changes of +95% and +41.21%, respectively, from the former 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, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 1.96% higher. New Gold is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, New Gold currently has a Forward P/E ratio of 11.97. This denotes a discount relative to the industry’s average Forward P/E of 13.23.
The Mining – Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
