New Found GoldNYSE American: NFGC

New Found Gold Corp. (NFGC) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Here is how New Found Gold Corp. (NFGC) and Allegheny Technologies (ATI) have performed compared to their sector so far this year.

New Found Gold Corp. has been given a "Buy" rating due to its promising exploration activities in Canada's Newfound province near Gander City, as well as the potential for growth in the gold market. The correlation between New Found Gold and gold spot prices briefly turned negative, but now appears to have stabilized. The expected recession in the US is boosting gold as a safe haven in North American markets, which could also benefit New Found Gold.

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This analysis produces a Buy rating for New Found Gold Corp., but this rating should not be acted upon immediately as the stock could become cheaper soon. A strong positive correlation with the gold price and expectations of a bull market for the gold price due to recession fears could potentially propel New Found Gold Corp to. Gold will be in high demand as a safe haven against the risk of economic recession, gaining momentum as the Fed Chair assesses the current macroeconomic situation.