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Here's Why New Gold (NGD) Fell More Than Broader Market

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New Gold (NGD - Free Report) ended the recent trading session at $6.43, demonstrating a -4.6% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.27%, and the technology-centric Nasdaq decreased by 0.07%.

Shares of the gold mining company witnessed a gain of 29.61% over the previous month, beating the performance of the Basic Materials sector with its gain of 6.19%, and the S&P 500's gain of 2.71%.

The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. In that report, analysts expect New Gold to post earnings of $0.17 per share. This would mark year-over-year growth of 112.5%.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.5 per share and a revenue of $1.41 billion, signifying shifts of +150% and +52.62%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for New Gold. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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, the Zacks Consensus EPS estimate has moved 7.53% higher. Right now, New Gold possesses a Zacks Rank of #3 (Hold).

In terms of valuation, New Gold is currently trading at a Forward P/E ratio of 13.48. This represents a discount compared to its industry average Forward P/E of 14.26.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 37% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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