New Gold (NGD – Free Report) closed the latest trading day at $2.52, indicating no change from the previous session’s end. The stock’s performance was ahead of the S&P 500’s daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
The gold mining company’s shares have seen a decrease of 8.03% over the last month, surpassing the Basic Materials sector’s loss of 8.95% and falling behind the S&P 500’s gain of 1.05%.
Market participants will be closely following the financial results of New Gold in its upcoming release. In that report, analysts expect New Gold to post earnings of $0.06 per share. This would mark year-over-year growth of 700%.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $961 million, which would represent changes of +157.14% and +22.19%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. New Gold presently features a Zacks Rank of #2 (Buy).
In the context of valuation, New Gold is at present trading with 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. At present, this industry carries a Zacks Industry Rank of 125, placing it within the top 50% of over 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.
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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