Evaluating ROYAL GOLD INC (NASDAQ:RGLD) using Mark Minervini’s winning stock formula

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ROYAL GOLD INC (NASDAQ:RGLD) is suited for growth investing. Investors should of course do their own research, but we spotted ROYAL GOLD INC showing up in our Minervini growth screen, so it may be worth spending some more time on it.

RGLD passes the Minervini Trend Template check!

RGLD checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

ChartMill's Evaluation of Growth

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. RGLD boasts a 6 out of 10:

Explosive Earnings Growth

• In the most recent financial report, RGLD reported a 71.58% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• 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.
• RGLD has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

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 has achieved an impressive Return on Equity (ROE) of 10.65%, showcasing its ability to generate favorable returns for shareholders.
• With a Debt-to-Equity ratio at 0.0, RGLD showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Market Strength & Institutional Confidence

• The ownership composition of RGLD reflects a balanced investor ecosystem, with institutional shareholders owning 88.27%. This indicates a broader market participation and potential for increased trading liquidity.
• RGLD has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 96.2 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

How does the Setup look for RGLD

The Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For RGLD this score is currently 3:

Although RGLD has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our latest full technical report of RGLD contains the most current technical analsysis.

Final Thoughts

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.