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Why New Gold (NGD) Outpaced the Stock Market Today

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New Gold (NGD - Free Report) ended the recent trading session at $6.94, demonstrating a +1.61% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.48%.

Shares of the gold mining company have appreciated by 15.76% over the course of the past month, outperforming the Basic Materials sector's gain of 4.08%, and the S&P 500's gain of 2.87%.

The investment community will be paying close attention to the earnings performance of New Gold in its upcoming release. The company is expected to report EPS of $0.17, up 112.5% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.5 per share and a revenue of $1.41 billion, representing changes of +150% and +52.62%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for New Gold. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.66% increase. New Gold is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, New Gold is holding a Forward P/E ratio of 13.8. This indicates a discount in contrast to its industry's Forward P/E of 16.27.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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