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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.