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New Gold (NGD) Rises Higher Than Market: Key Facts

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In the latest market close, New Gold (NGD - Free Report) reached $3.12, with a +0.32% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.15%.

Prior to today's trading, shares of the gold mining company had gained 17.36% over the past month. This has outpaced the Basic Materials sector's gain of 1.99% and the S&P 500's gain of 2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of New Gold in its upcoming earnings disclosure.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.15 per share and revenue of $969 million, which would represent changes of +114.29% and +23.2%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for New Gold. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 4.76% fall in the Zacks Consensus EPS estimate. New Gold is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that New Gold has a Forward P/E ratio of 20.73 right now. Its industry sports an average Forward P/E of 16.32, so one might conclude that New Gold is trading at a premium comparatively.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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