10 Best Stocks Under $3 to Buy Now

4. New Gold Inc. (NYSEAMERICAN:NGD)

Share Price: $2.79

Number of Hedge Fund Holders: 26

New Gold Inc. (NYSEAMERICAN:NGD) is a Canadian mining company that owns a portfolio of two core producing assets in Canada, the New Afton copper-gold mine in British Columbia and the Rainy River gold mine in Ontario. The company produces gold, silver, and copper. New Gold Inc. (NYSEAMERICAN:NGD) ranks among the best stocks under $3.

The company is making strategic moves to increase production, reduce costs, expand margins, and generate significant cash flow. On February 12, New Gold Inc. (NYSEAMERICAN:NGD) announced its three-year operational outlook and life-of-mine plans that outline the company’s strong production profile with reducing costs, strong free cash flow generation and increasing net asset value. At New Afton, the company reported that copper and gold reserves grew by 15% and 13% respectively compared to year-end 2023. Mine life was also extended through the East Expansion, adding high-grade material, and C-Zone’s increased draw height without any extra capital. New Gold Inc. (NYSEAMERICAN:NGD) reported that Rainy River’s Phase 5 expansion extended the open pit to push low-grade stockpile processing into the future and keep the mill full until the end of 2029. These moves are expected to help the company boost free cash flow through 2027 by leveraging higher margins from cost reductions.

On February 13, Scotiabank raised the firm’s price target on New Gold Inc. (NYSEAMERICAN:NGD) from $3.5 to $4 and maintained an “Outperform” rating. This decision came after the company released an updated 3-year operational outlook, which Scotiabank views as positive for the stock.