In This Article:
New Gold (NGD) closed the most recent trading day at $2.85, moving +1.06% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 1.78%. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 2.61%.
Coming into today, shares of the gold mining company had lost 9.32% in the past month. In that same time, the Basic Materials sector lost 0.13%, while the S&P 500 lost 3.48%.
The investment community will be closely monitoring the performance of New Gold in its forthcoming earnings report. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.24 per share and revenue of $1.19 billion, which would represent changes of +20% and +28.88%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for New Gold. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.76% decrease. Currently, New Gold is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that New Gold has a Forward P/E ratio of 12 right now. Its industry sports an average Forward P/E of 12.13, so one might conclude that New Gold is trading at a discount comparatively.
It's also important to note that NGD currently trades at a PEG ratio of 0.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Gold industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Mining - Gold industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.