We recently compiled a list of the 10 Best Stocks Under $3 to Buy Now. In this article, we are going to take a look at where New Gold Inc. (NYSEAMERICAN:NGD) stands against the other stocks under $3.
Investors are grappling with Trump-fueled stock market volatility in 2025. On March 12, 2025, Yahoo Finance reported that Penny Pennington, CEO of Edward Jones, explained on Yahoo Finance’s Opening Bid podcast that this volatility should have been expected. She noted that after years of relatively calm markets where we didn’t see the usual pullbacks, typically ranging from 5% to 15%. She further pointed out that the current environment, marked with uncertainties from tariffs and policy changes, is bound to provoke market reactions.
READ ALSO: 8 Fastest Growing AI Stocks To Buy Right Now and 10 Cheap Technology Stocks to Buy According to Hedge Funds.
The markets have been particularly volatile this year due to concerns about tariffs and potential economic slowdowns. The market has taken a hit, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all dropping around 5% on average in March alone. Large-cap tech companies have led this downturn. For the year, the Nasdaq has declined nearly 10%, the S&P 500 by 6%, and the Dow by 3%.
Recent economic data for consumer confidence from the Dallas Fed survey highlights growing caution among consumers and businesses. This has further fueled volatility as markets adjust to a potential slowdown in growth.
Pennington’s advice to investors is to stay prepared for several more years of volatility under the Trump administration.
The mix of policy uncertainty, tariff impacts, and inflation concerns has created a volatile environment, and this is likely to continue. Despite these concerns, some penny stocks continue to attract attention for their promising prospects.
Methodology
To compile our list of the 10 best stocks under $3 to buy now, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 20 companies with a share price of under $3 as of March 10, 2025. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best stocks under $3 to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of an open mine with large cranes and excavators working on the surface.
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.
Overall, NGD ranks 4th on our list of the best stocks under $3 to buy now. While we acknowledge the potential of NGD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NGD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
