Why ROYAL GOLD INC (NASDAQ:RGLD) qualifies as a high growth stock.

Our stock screener has identified ROYAL GOLD INC (NASDAQ:RGLD) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:RGLD.

Analyzing the Technical Aspects

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 10 out of 10 to RGLD. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, RGLD is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, RGLD did better than 94% of all other stocks. On top of that, RGLD also shows a nice and consistent pattern of rising prices.
• RGLD is part of the Metals & Mining industry. There are 151 other stocks in this industry. RGLD outperforms 82% of them.
• RGLD is currently trading in the upper part of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So RGLD is doing quite good in this market.
• Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of RGLD

How does the Setup look for RGLD

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. RGLD scores a 7 out of 10:

Besides having an excellent technical rating, RGLD also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 155.59, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Understanding RGLD's High Growth Momentum Score

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. RGLD has achieved a 6 out of 10:

Explosive Earnings Growth

• The earnings per share (EPS) of RGLD have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 71.58% increase. This reflects the company's ability to improve its profitability over time.
• RGLD has experienced 48.17% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The recent q2q revenue growth of 32.68% of RGLD showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, RGLD showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• RGLD has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its profit margin over the past year, RGLD demonstrates its ability to enhance profitability through efficient operations.
• RGLD showcases a robust Return on Equity (ROE) of 10.65%, indicating its ability to generate favorable returns for shareholders. This metric underscores the company's efficiency in utilizing its equity capital to generate profits.
• RGLD maintains a healthy Debt-to-Equity ratio of 0.0. This indicates the company's conservative capital structure and signifies its ability to effectively manage debt obligations while maintaining a strong equity position.

Market Strength & Institutional Confidence

• With institutional shareholders at 88.27%, RGLD demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• The Relative Strength (RS) of RGLD has been consistently solid, with a current 94.5 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.