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New Gold (NGD) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw New Gold (NGD - Free Report) ending at $1.95, denoting a -1.02% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.35%.

The the stock of gold mining company has risen by 1.03% in the past month, leading the Basic Materials sector's loss of 2% and undershooting the S&P 500's gain of 3.25%.

Investors will be eagerly watching for the performance of New Gold in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.02, marking stability compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.12 per share and a revenue of $906.5 million, signifying shifts of +71.43% and +15.26%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for New Gold. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.94% increase. New Gold is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that New Gold has a Forward P/E ratio of 16.89 right now. For comparison, its industry has an average Forward P/E of 14.97, 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 16, positioning it in the top 7% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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