Here's Why Royal Gold (RGLD) is a Strong Growth Stock

Royal Gold (RGLD) is identified as a potentially strong growth stock by Zacks, holding a Zacks Rank of #3 (Hold) and a VGM Score of B. The company's Growth Style Score is B, supported by a projected 35.9% year-over-year earnings growth for the current fiscal year and a consensus EPS estimate increase to $7.15 for fiscal 2025 following upward revisions by four analysts; RGLD also demonstrates a 9% average earnings surprise.

Analysis

Royal Gold (RGLD) exhibits a compelling growth outlook despite its current Zacks Rank #3 (Hold), primarily due to its strong B-rated Growth Style Score and B-rated VGM Score. The company is forecast to deliver substantial year-over-year earnings growth of 35.9% for the current fiscal year. This positive trajectory is underscored by recent analyst actions, with four analysts revising their earnings estimates upwards for fiscal 2025 within the last 60 days, resulting in the Zacks Consensus Estimate for earnings per share increasing by $0.47 to $7.15. Furthermore, RGLD has a track record of exceeding expectations, evidenced by an average earnings surprise of 9%. According to Zacks' methodology, a #3 (Hold) ranked stock with A or B Style Scores, like RGLD, still warrants consideration for its upside potential, making it a noteworthy candidate for investors prioritizing growth.

Key Decisions for Investors

• Investors with a growth focus should consider RGLD's projected 35.9% earnings growth and its B-rated Growth and VGM Style Scores, which suggest potential upside even with the neutral Zacks #3 (Hold) rank.
• The recent upward revisions in fiscal 2025 earnings estimates to $7.15 per share by four analysts, along with a consistent 9% average earnings surprise, highlight positive fundamental momentum that merits evaluation for growth-oriented portfolios.
• Given the 'Hold' recommendation from the Zacks Rank, it is prudent to monitor RGLD for sustained positive earnings estimate revisions and other company-specific catalysts that could affirm the growth narrative suggested by its strong Style Scores and potentially lead to a rank upgrade.