New Gold (NGD) Rises But Trails Market: What Investors Should Know

Core Viewpoint - New Gold is experiencing a mixed performance in the market, with a notable gain over the past month, but upcoming earnings are expected to show a significant decline in EPS compared to the previous year [1][2]. Company Performance - New Gold's stock closed at $3.59, reflecting a daily increase of +0.56%, which is lower than the S&P 500's gain of 0.79% [1]. - Over the past month, New Gold's shares have increased by 11.91%, while the Basic Materials sector and the S&P 500 have decreased by 4.43% and 3.56%, respectively [1]. - The upcoming earnings report is scheduled for April 29, 2025, with an expected EPS of$ 0.01, indicating a 50% decrease from the same quarter last year [2]. Earnings Estimates - For the full year, analysts project earnings of $0.37 per share and revenue of$ 1.12 billion, representing increases of +85% and +21.15% from the previous year [3]. - Recent modifications to analyst estimates suggest a changing business landscape, with positive revisions indicating optimism about New Gold's outlook [4]. Analyst Ratings - The Zacks Rank system currently rates New Gold as 3 (Hold), with a recent upward shift of 57.45% in the consensus EPS estimate [6]. - The Zacks Rank ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically delivering an average annual return of +25% since 1988 [5][6]. Valuation Metrics - New Gold's Forward P/E ratio stands at 9.65, which is below the industry average of 15.23, indicating a potential valuation discount [7]. - The Mining - Gold industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 145, placing it in the bottom 42% of over 250 industries [7][8].