Gold on the Cheap — Snap Up This Nugget

New Gold, Inc. (AMEX:NGD) — This mid-cap gold company with assets in the U.S. and the Americas is expected by Zacks to increase earnings in 2012 by 9% to 59 cents, a 29% growth projection. NGD reported second-quarter earnings of 12 cents per share, which met the consensus of nine analysts. New Gold will announce third-quarter earnings Nov. 4, and analysts expect the company to outperform the sector.

In early August, the stock broke from a four-month consolidation at just over $11, supported by very high volume. But a general correction in gold drove the stock to its bullish support line and 200-day moving average at $10.50, where it rebounded. The stock sells at a discount to its group and technically could break its high, then drive to $15 before the end of this year. Buy NGD stock at the market.

New Gold, Inc. NGD

Trade of the Day Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2011/10/gold-stock-on-the-cheap-buy-new-gold-inc-ngd/.

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