Is ROYAL GOLD INC (NASDAQ:RGLD) suited for high growth investing?

A possible breakout setup was detected on ROYAL GOLD INC (NASDAQ:RGLD) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NASDAQ:RGLD.

In-Depth Technical Analysis of RGLD

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, RGLD scores 10 out of 10 in our technical rating. 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.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that RGLD is one of the better performing stocks in the market, outperforming 95% of all 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 153 other stocks in this industry. RGLD outperforms 79% of them.
• RGLD is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so RGLD slightly outperforms the market at the moment.
• RGLD is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for RGLD is 7:

Besides having an excellent technical rating, RGLD also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 178.07, a Stop Loss order could be placed below this zone.

High Growth Analysis for RGLD

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. RGLD has earned a 6:

Explosive Earnings Growth

• RGLD has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 71.58% increase. This indicates improving financial performance and the company's effective management of its operations.
• RGLD has achieved 48.17% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• 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 surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• 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 positive growth in its profit margin over the past year, RGLD showcases its ability to improve profitability.
• With a favorable Return on Equity (ROE) of 10.65%, RGLD demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• A Debt/Equity ratio of 0.0 indicates that RGLD is leveraging debt effectively without excessive risk.

Institutional Confidence & Market Strength

• RGLD exhibits a favorable ownership structure, with an institutional shareholder ownership of 88.27%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• RGLD has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 95.26 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

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.