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New Gold (NGD) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, New Gold (NGD - Free Report) closed at $2.19, marking a -0.45% move from the previous day. This change lagged the S&P 500's daily gain of 0.8%. Elsewhere, the Dow saw an upswing of 1.51%, while the tech-heavy Nasdaq depreciated by 0.01%.

Coming into today, shares of the gold mining company had gained 20.88% in the past month. In that same time, the Basic Materials sector gained 3.46%, while the S&P 500 gained 4.14%.

The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. The company is predicted to post an EPS of $0.02, indicating constancy compared to the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.12 per share and revenue of $906.5 million, which would represent changes of +71.43% and +15.26%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 37.26% increase. Currently, New Gold is carrying a Zacks Rank of #1 (Strong Buy).

Investors should also note New Gold's current valuation metrics, including its Forward P/E ratio of 18.86. This represents a premium compared to its industry's average Forward P/E of 16.03.

The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% of all 250+ industries.

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.

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