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New Gold (NGD) Outperforms Broader Market: What You Need to Know

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New Gold (NGD - Free Report) closed at $12.85 in the latest trading session, marking a +1.82% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.

Shares of the gold mining company witnessed a gain of 38.99% over the previous month, beating the performance of the Basic Materials sector with its gain of 8.78%, and the S&P 500's gain of 0.6%.

Investors will be eagerly watching for the performance of New Gold in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.27, indicating a 285.71% growth compared to the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.61 per share and revenue of $0 million, which would represent changes of +205% and 0%, respectively, from the prior year.

Investors should also note any 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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 moved 14.5% higher. New Gold currently has a Zacks Rank of #3 (Hold).

In the context of valuation, New Gold is at present trading with a Forward P/E ratio of 9.99. This represents a discount compared to its industry average Forward P/E of 14.83.

The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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