Here's Why New Gold (NGD) Fell More Than Broader Market

In the latest close session, New Gold (NGD) was down 4.22% at $9.07. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.28%.

Prior to today's trading, shares of the gold mining company had lost 15.6% lagged the Basic Materials sector's loss of 9.78% and the S&P 500's loss of 3.59%.

Market participants will be closely following the financial results of New Gold in its upcoming release. The company is expected to report EPS of $0.27, up 285.71% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.66 per share and a revenue of $0 million, demonstrating changes of +230% and 0%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for New Gold. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, there's been a 5.82% rise in the Zacks Consensus EPS estimate. 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 5.79 right now. This valuation marks a discount compared to its industry average Forward P/E of 9.97.

The Mining - Gold industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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