New Gold (NGD) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, New Gold (NGD) closed at $3.19, marking a -1.24% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 2.13% for the day. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 2.61%.Prior to today's trading, shares of the gold mining company had gained 6.6% over the past month. This has outpaced the Basic Materials sector's loss of 4.39% and the S&P 500's loss of 9.57% in that time.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 per share. This would mark a year-over-year decline of 100%.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.24 per share and a revenue of $1.12 billion, indicating changes of +20% and +21.15%, respectively, from the former year.It's also important for investors to be aware of any recent modifications 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 company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an 8.74% decrease. At present, New Gold boasts a Zacks Rank of #3 (Hold).Looking at valuation, New Gold is presently trading at a Forward P/E ratio of 13.74. This indicates a premium in contrast to its industry's Forward P/E of 13.34.We can additionally observe that NGD currently boasts a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Mining - Gold stocks are, on average, holding a PEG ratio of 0.88 based on yesterday's closing prices.The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report New Gold Inc. (NGD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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