Back to top

Image: Bigstock

New Gold (NGD) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

In the latest market close, New Gold (NGD - Free Report) reached $4.76, with a -2.06% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%.

Shares of the gold mining company witnessed a gain of 27.56% over the previous month, beating the performance of the Basic Materials sector with its gain of 4.58% and the S&P 500's gain of 6.29%.

The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. The company is expected to report EPS of $0.08, up 300% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.39 per share and revenue of $1.31 billion. These totals would mark changes of +95% and +41.21%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for New Gold. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 moved 1.96% higher. As of now, New Gold holds a Zacks Rank of #3 (Hold).

Looking at its valuation, New Gold is holding a Forward P/E ratio of 12.46. For comparison, its industry has an average Forward P/E of 12.99, which means New Gold is trading at a discount to the group.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


New Gold Inc. (NGD) - free report >>

Published in