New Gold (NGD) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest close session, New Gold (NGD) was down 2.99% at $10.72. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. Meanwhile, the Dow experienced a drop of 1.56%, and the technology-dominated Nasdaq saw a decrease of 1.78%.

Heading into today, shares of the gold mining company had lost 2.9% over the past month, outpacing the Basic Materials sector's loss of 5.1% and lagging the S&P 500's loss of 2.25%.

Analysts and investors alike will be keeping a close eye on the performance of New Gold in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 285.71% increase from the same quarter last year.

NGD's full-year Zacks Consensus Estimates are calling for earnings of $0.66 per share and revenue of $0 million. These results would represent year-over-year changes of +230% and 0%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for New Gold. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 5.82% higher. Right now, New Gold possesses a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, New Gold is holding a Forward P/E ratio of 6.75. This denotes a discount relative to the industry average Forward P/E of 11.23.

The Mining - Gold industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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