Analysts are optimistic about New Gold (NGD), suggesting it could be a solid investment opportunity for buyers
New York: When it comes to buying or selling stocks, many folks look to analysts for guidance. But do these recommendations really matter? Let’s dive into what Wall Street is saying about New Gold (NGD).
Currently, New Gold has an average brokerage recommendation of 1.89, which is pretty close to a “Strong Buy.” This score comes from nine different brokerage firms, with five saying “Strong Buy” and one saying “Buy.” So, it seems like a lot of analysts are feeling positive about it.
However, just because the analysts are recommending it doesn’t mean you should jump in without doing your homework. Studies show that these recommendations don’t always lead to the best investment choices. Analysts often have a bias because of their firms’ interests, which can skew their ratings.
For instance, brokerage firms tend to give out five “Strong Buy” ratings for every “Strong Sell.” This means their recommendations might not always reflect the true potential of a stock. It’s smart to use their insights to back up your own research instead of relying on them completely.
One tool that can help is the Zacks Rank, which rates stocks based on earnings estimate revisions. It’s a solid way to gauge a stock’s potential. The Zacks Rank is different from the average brokerage recommendation, as it focuses on earnings trends and is updated more frequently.
Looking at New Gold, the Zacks Consensus Estimate for this year has gone up by 8.7% recently, which is a good sign. Analysts are getting more optimistic about the company’s earnings, and that could mean the stock might rise soon.
With a Zacks Rank of #2 (Buy), New Gold is looking pretty appealing. So, while the average brokerage recommendation suggests buying, it’s always best to do your own research and consider multiple factors before making any investment decisions.
