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New Gold (NGD) Registers a Bigger Fall Than the Market: Important Facts to Note

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The latest trading session saw New Gold (NGD - Free Report) ending at $2.27, denoting a -1.73% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.78%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 0.7%.

Coming into today, shares of the gold mining company had gained 17.86% in the past month. In that same time, the Basic Materials sector gained 1.42%, while the S&P 500 gained 2.14%.

The upcoming earnings release of New Gold will be of great interest to investors. The company's earnings report is expected on July 30, 2024. The company is expected to report EPS of $0.02, unchanged from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.15 per share and revenue of $906.5 million, indicating changes of +114.29% and +15.26%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for New Gold. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.03% increase. New Gold is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, New Gold is presently being traded at a Forward P/E ratio of 15.75. This expresses a discount compared to the average Forward P/E of 16.5 of its industry.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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