New Gold Inc. (AMEX:NGD) — This mid-cap gold mining company with primary assets in United States, Mexico and Australia is expected to increase earnings in 2012 by 9% to 59 cents, a 29% growth projection (Zacks). NGD reported Q2 earnings of 12 cents per share, which met the consensus of nine analysts.
Technically the stock broke from a four-month consolidation in early August at just over $11 supported by very high volume. This volatile junior gold stock is on our list of Top Stocks to Buy for September.
But since gold is in a correction, NGD could experience some profit-taking. However, it has a strong base and is selling at a slight discount to the industry’s average price/earnings ratio, so the new buy price is at its 50-day moving average at $12.
- See Sam Collins’ Daily Market Outlook: Charts Say It’s Time to Sell
- See Serge Berger’s Daily Market Outlook: Sell Into the Long-in-the-Tooth Rally
- See Sam Collins’ Trade of the Day: Top Gold Stock to Buy on a Pullback
