New Gold Inc. (NYSE: NGD) has been on fire this year, and investors are definitely noticing.
The stock just hit a 52-week high at $5.72 and has skyrocketed 129% year-to-date, absolutely crushing the Basic Materials sector’s average gain of 17.6% and even outpacing the gold mining industry’s 81.7% jump.
So, what’s behind this incredible run, and can it keep going? Let’s break it down.
NGD Leaves Peers in the Dust
New Gold has been delivering consistent wins every quarter, beating earnings estimates for four straight reports. In July, the company reported earnings per share (EPS) of $0.11, surpassing expectations for the second consecutive quarter.
That streak has made analysts bullish, pushing their full-year earnings outlook up by 17% in just the past three months.
The company’s fundamentals are also looking strong. Revenue is expected to climb 52% this year, and EPS is on track to grow a massive 140%.
Next year, things look even brighter with EPS forecasted to rise another 72% alongside a 46% jump in revenue.
Is NGD Still a Good Buy?
Despite the surge, New Gold’s valuation isn’t out of control. The stock trades at around 11.9x earnings, slightly below the industry average of 13.4x, which means it still looks reasonably priced for a growth play.
It also holds a Zacks Rank #2 (Buy) and a solid VGM Score of A, signalling that analysts think there’s still room to run.
The Bigger Picture
New Gold isn’t the only name catching attention in the sector. Steel producer Posco (PKX) has gained 23% this year, and gold peer Agnico Eagle Mines (AEM) is also looking strong with a Zacks Rank #1 (Strong Buy) and double-digit gains.
But NGD stands out because it’s been delivering consistent performance while staying attractively valued.
In a market where commodities and supply chain shifts are shaking things up, a small-cap miner delivering steady wins is rare, and investors are eating it up.
For those keeping an eye on the small-cap mining space, New Gold is the stock to watch.
With strong earnings, rising revenue, and room left to climb, NGD isn’t just a shiny name; it’s a potential game-changer for portfolios looking for growth in the metals sector.
