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New Gold (NGD) Registers a Bigger Fall Than the Market: Important Facts to Note

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New Gold (NGD - Free Report) closed the most recent trading day at $7.21, moving -1.37% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.

The gold mining company's shares have seen an increase of 12.12% over the last month, surpassing the Basic Materials sector's gain of 0.97% and the S&P 500's gain of 4.06%.

The upcoming earnings release of New Gold will be of great interest to investors. On that day, New Gold is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 112.5%.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.5 per share and revenue of $1.41 billion, indicating changes of +150% and +52.62%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for New Gold. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has shifted 3.66% upward. New Gold presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that New Gold has a Forward P/E ratio of 14.77 right now. This denotes a discount relative to the industry average Forward P/E of 16.91.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.

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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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