ROYAL GOLD INC (NASDAQ:RGLD) - A High Growth Momentum Stock with Strong Technical Setup

ROYAL GOLD INC (NASDAQ:RGLD) stands out as a high-growth momentum candidate with a solid technical setup. The company, which specializes in precious metal streams and royalties, has demonstrated strong earnings growth and maintains a favorable technical structure for potential breakout opportunities.

Growth Momentum Highlights

• Earnings Growth: RGLD reported a 67.4% year-over-year increase in EPS (TTM), with recent quarterly growth rates exceeding 65%.
• Sales Growth: Revenue growth over the past year reached 18.8%, with recent quarters showing consistent expansion.
• Profit Margins: The company’s profit margin improved to 53% in the latest quarter, up from 49.7% in the prior quarter.
• Positive Surprises: RGLD has beaten EPS estimates in three of the last four quarters, with an average surprise of 3.9%.

Technical Strength

• Technical Rating: RGLD scores a perfect 10 out of 10, reflecting strong price momentum and relative strength.
• Trend Performance: The stock is in both short-term and long-term uptrends, outperforming 94% of stocks over the past year.
• Support Levels: Multiple support zones exist between $176.50 and $121.95, providing downside protection.
• Consolidation Pattern: The stock has been consolidating near resistance at $184.91, presenting a potential breakout opportunity.

Setup Quality

• Setup Rating: RGLD scores an 8 out of 10, indicating a well-defined consolidation pattern.
• Entry Point: A breakout above $186.47 could signal a new upward move, with a stop-loss suggested below $176.49.
• Risk/Reward: The setup offers a favorable risk-reward ratio, with a potential loss of 5.35% if the breakout fails.

For a deeper technical analysis, review the full technical report for RGLD.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The article highlights observations at the time of writing, but investors should conduct their own analysis before making decisions.