New Gold Inc. (NGD) Shares Soar 1.37% on Strategic Acquisitions, Positive Analyst Outlook

New Gold Inc. (NGD) shares surged 1.37% today, reaching their highest level since November 2016 with an intraday gain of 2.05%.

Over the past five years, the strategy of buying NGD shares after they reached a recent high and holding for one week yielded impressive results. The strategy achieved a remarkable return of 243.73%, significantly outperforming the benchmark return of 49.45%. The excess return generated was 194.29%, with a compound annual growth rate (CAGR) of 68.11%. Although the strategy had a maximum drawdown of -39.38% and a Sharpe ratio of 1.29, the high volatility of 52.99% indicated a challenging risk environment. Overall, the strategy demonstrated robust growth potential, albeit with considerable volatility and risk.

New Gold's strategic acquisitions and positive analyst outlook have significantly boosted investment interest. The company's Zacks Rank of #2 (Buy) and the Zacks Consensus Estimate for its full-year earnings have increased by 61.4%, reflecting a strong market sentiment.

BMO Capital's analyst, Brian Quast, has renewed coverage on New Gold with an Outperform rating and raised the price target to C$7 from C$6.50, indicating a positive outlook and potential for stock growth.

A significant rise in gold prices has positively impacted New Gold's stock performance, resulting in a one-month return of 12.53% and a substantial appreciation of 97.95% over a certain period.

New Gold announced results from its board elections and received shareholder approvals, which could influence investor confidence and stock performance.

The closing of an agreement with Ontario Teacher’s Pension Plan, increasing the company's free cash flow interest at New Afton to 100% for a cash payment of $300M, further supports the stock's outlook.