New Gold Inc. (NYSE:NGD) Presents Strong Momentum And Superior Growth

The stock is lingering around the initial support level of $0.99. After this, the following support is at the zone of $0.93. Up until the time the NGD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 65.28 on the daily chart, and this may be a cause for concern. In case the price goes below $0.93 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $1.08 level may cause a pull-back move approaching $1.11 mark.

New Gold Inc. (NGD) is most likely going to rise 285.58 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $1.44 as 12-month high price target. This represents a whopping 38.46 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $1.15, which means a return possibility of 10.58 percent in comparison with the closing price of the stock of $1.04 in recent trading session. The lowest price set for the stock is $0.65 which is just above -37.5 percent from NGD share’s price at the end of session.

In the recent trading session, New Gold Inc. (NYSE:NGD) shares lost 0% or 0 points to reach at $1.04 with a thin trading volume of 1.073 million shares. It opened the trading session at $0.98, the shares rose to $1.06 and dropped to $0.97, the range by which the price of stock traded the whole session. The company now has a market cap of $656 million and currently has 630.81 million outstanding shares. New Gold Inc. (NGD) stock has accumulated 18.24 percent of market value in 21 trading days.

Stock analysts at RBC Capital Mkts, assumed coverage of shares of New Gold Inc. (NYSE:NGD) with Underperform recommendation, according to their opinion released on December 05. RBC Capital Mkts analysts bumped their recommendation on NGD stock from prior rating of Underperform to Sector Perform in a separate flash note to investors on September 05. Analysts at JP Morgan downgraded the company stock to a Underweight call from its previous Neutral stance, in a flash note that dated back to May 30.

NGD stock’s trailing 3-year beta is 1.05, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.38 share in the trailing 52 weeks. The stock’s value surged 18.18 percent year to date (YTD) compared to a decline of 0 percent in 52 week’s period. The firm’s shares are still trading -33.33 percent below its 1-year high of $1.56 and 70.46 percent up from 52-week low of $0.61. The average consensus ranking on the company is 2.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

New Gold Inc. (NGD) shares are trading at a P/E ratio of -0.73 times earnings posted in the trailing 12 months. The industry NGD deals with has an average P/E of 49.17. Its P/B ratio is standing at 0.63X compared to the 3.05 industry average. It is additionally sporting a 1.04 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.15. New Gold Inc. has a 79.7% gross profit margin, with its operating margin around -97.4%.

Past records have indicated that shares in New Gold Inc. declined on 11 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of NGD’s Q4 earnings on February 12. Analysts are predicting revenue to climb 28.2 percent to $217M in the financial fourth quarter, while EPS will soar by about -50 percent to $0.01 per share. In the last quarter, it’s earnings of $0 per share came better than the -$0.01444, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $157.4M, missing the $163.5M analysts had expected. Earnings are seen to rise by -561.3 percent this year, 83.3 percent in the coming year and the trend continues by 5 percent every year in the next 5 years.