Core Viewpoint - New Gold (NGD) has experienced significant selling pressure, resulting in a 10% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) for NGD is currently at 28.3, indicating that the stock is in oversold territory, which may suggest a reversal in trend soon [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating oversold conditions [2][3] Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for NGD, leading to a 20.5% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7] - NGD holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8]
Down 10.0% in 4 Weeks, Here's Why New Gold (NGD) Looks Ripe for a Turnaround