Why Royal Gold (RGLD) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights Royal Gold (RGLD) as a compelling momentum stock, assigning it a Zacks Rank of #3 (Hold) with a VGM Score of B and a Momentum Style Score of A. The article notes RGLD's shares are up 1.4% over the past four weeks, and the consensus earnings estimate for fiscal 2025 has increased by $0.47 to $7.15 per share following upward revisions from four analysts in the last 60 days, indicating positive earnings momentum.

Analysis

Royal Gold (RGLD), a company specializing in acquiring and managing precious metals stream and royalty interests, currently holds a Zacks Rank #3 (Hold) but is highlighted for its strong momentum attributes. The stock carries a Momentum Style Score of A and a VGM Score of B, with its shares having risen 1.4% over the past four weeks. Indicative of its positive earnings trajectory, the Zacks Consensus Estimate for fiscal 2025 has increased by $0.47 to $7.15 per share, driven by four upward analyst revisions in the last 60 days. Furthermore, RGLD has a track record of an average earnings surprise of 9%, suggesting potential upside even with a neutral overall rating, and aligning with the article's perspective that it should be on an investor's short list due to these factors.

Key Decisions for Investors

• Investors should consider Royal Gold's strong momentum indicators, such as its 'A' Momentum Style Score and recent positive earnings estimate revisions, particularly if aligning with a momentum-focused investment strategy despite the current Zacks Rank #3 (Hold).
• It is advisable to monitor for any further upward revisions in earnings estimates or an upgrade in the Zacks Rank for RGLD, as these are key factors in the Zacks methodology and would strengthen the investment case.
• Given the 'Hold' rating juxtaposed with strong Style Scores, RGLD warrants consideration for a watchlist, as its 'A' or 'B' Style Scores suggest potential upside that could evolve into a more definitive buy signal based on changes in earnings outlook.