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

ROYAL GOLD INC (NASDAQ:RGLD) stands out as a compelling candidate for high growth momentum investors, combining strong earnings momentum with a favorable technical breakout pattern. The stock meets stringent criteria with a High Growth Momentum Rating of 6, a Technical Rating of 10, and a Setup Rating of 7.

Fundamental Strength and Growth Momentum

• Earnings Growth: RGLD reported a 67.4% year-over-year EPS growth (TTM), with recent quarterly EPS growth exceeding 65%. The next quarter’s estimated growth is 20.1%, indicating sustained momentum.
• Revenue Growth: Sales growth over the past year reached 30.8%, with recent quarters showing consistent expansion (29.9% in the latest quarter).
• Profit Margins: The company’s profit margin improved to 58.7% in the most recent quarter, up from 46.6% a year ago, reflecting strong operational efficiency.
• Analyst Confidence: EPS estimates for the next year have been revised upward by 5.9% over the past three months, signaling optimism.
• Cash Flow Strength: Free cash flow per share surged 180% year-over-year, reinforcing financial health.

Technical Strength and Setup

• Perfect Technical Rating (10/10): RGLD is in a clear uptrend, outperforming 92% of stocks over the past year. Both short-term and long-term trends remain positive.
• Consolidation Pattern (Setup Rating: 7/10): The stock has been trading in a range between $164.20 and $184.76, with reduced volatility suggesting a potential breakout.
• Support and Resistance: A key resistance zone lies at $184.91-$186.46. A breakout above this level could signal further upside, with support near $173.77 providing a logical stop-loss area.

For a deeper look at the technicals, review the full technical report for RGLD.

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Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own analysis before making decisions.