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New Gold (NGD) Beats Stock Market Upswing: What Investors Need to Know

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New Gold (NGD - Free Report) closed the latest trading day at $3.13, indicating a +0.97% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.52%.

The gold mining company's stock has climbed by 21.09% in the past month, exceeding the Basic Materials sector's gain of 2.11% and the S&P 500's gain of 3.67%.

Investors will be eagerly watching for the performance of New Gold in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.03, showcasing no movement from the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.14 per share and a revenue of $959 million, signifying shifts of +100% and +21.93%, respectively, from the last year.

Any recent changes to analyst estimates for New Gold should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. New Gold presently features a Zacks Rank of #4 (Sell).

In terms of valuation, New Gold is currently trading at a Forward P/E ratio of 22.14. For comparison, its industry has an average Forward P/E of 16.97, which means New Gold is trading at a premium to the group.

The Mining - Gold industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 134, positioning it in the bottom 48% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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