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Why the Market Dipped But New Gold (NGD) Gained Today

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New Gold (NGD - Free Report) closed at $11.20 in the latest trading session, marking a +1.27% move from the prior day. This change outpaced the S&P 500's 2.06% loss on the day. Meanwhile, the Dow lost 1.76%, and the Nasdaq, a tech-heavy index, lost 2.39%.

Coming into today, shares of the gold mining company had gained 20.48% in the past month. In that same time, the Basic Materials sector gained 7.03%, while the S&P 500 gained 1.63%.

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 $0.27, up 285.71% from the prior-year quarter.

NGD's full-year Zacks Consensus Estimates are calling for earnings of $0.61 per share and revenue of $0 million. These results would represent year-over-year changes of +205% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for New Gold. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 14.5% upward. New Gold presently features a Zacks Rank of #3 (Hold).

Digging into valuation, New Gold currently has a Forward P/E ratio of 8.75. This signifies a discount in comparison to the average Forward P/E of 12.74 for its industry.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 20% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow NGD in the coming trading sessions, be sure to utilize Zacks.com.


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