New Gold (NGD – Free Report) closed the latest trading day at $2.49, indicating a -1.19% change from the previous session’s end. This move lagged the S&P 500’s daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
Prior to today’s trading, shares of the gold mining company had lost 8.03% over the past month. This has was narrower than the Basic Materials sector’s loss of 8.24% and lagged the S&P 500’s gain of 0.4% in that time.
Market participants will be closely following the financial results of New Gold in its upcoming release. The company is predicted to post an EPS of $0.06, indicating a 700% growth compared to the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and a revenue of $961 million, representing changes of +157.14% and +22.19%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for New Gold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. New Gold currently has a Zacks Rank of #2 (Buy).
Looking at valuation, New Gold is presently trading at a Forward P/E ratio of 14.2. This denotes a premium relative to the industry’s average Forward P/E of 12.33.
The Mining – Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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