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New Gold (NGD) Beats Stock Market Upswing: What Investors Need to Know

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New Gold (NGD - Free Report) closed the most recent trading day at $4.93, moving +2.07% from the previous trading session. This change outpaced the S&P 500's 0.96% gain on the day. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%.

Shares of the gold mining company have appreciated by 12.33% over the course of the past month, outperforming the Basic Materials sector's gain of 0.57%, and the S&P 500's gain of 0.5%.

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 $0.1, indicating a 400% growth compared to the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.39 per share and revenue of $1.31 billion, indicating changes of +95% and +41.21%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for New Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.29% lower. New Gold is currently a Zacks Rank #3 (Hold).

Investors should also note New Gold's current valuation metrics, including its Forward P/E ratio of 12.39. This denotes a discount relative to the industry average Forward P/E of 12.79.

The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 18% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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