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

According to Zacks, Royal Gold (RGLD) is a stock to watch for growth investors, possessing a Growth Style Score of B and forecasting 35.2% year-over-year earnings growth for the current fiscal year. The consensus estimate for fiscal year 2025 has increased by $0.58 to $7.11 per share, driven by four analysts raising their estimates in the last two months; RGLD also has a VGM Score of B and an average earnings surprise of 9%.

Analysis

Royal Gold (RGLD), a company specializing in acquiring and managing precious metals stream and royalty interests with a primary focus on gold, currently holds a Zacks Rank #3 (Hold). Despite this neutral overall ranking, the company exhibits strong growth characteristics, highlighted by a Growth Style Score of B and a VGM Score of B. Zacks forecasts a significant 35.2% year-over-year earnings growth for RGLD in the current fiscal year. Further bolstering this outlook, four analysts have revised their earnings estimates upwards for fiscal 2025 within the last 60 days, leading to an increase in the Zacks Consensus Estimate by $0.58 to $7.11 per share for that period. Additionally, RGLD has demonstrated a consistent ability to outperform expectations, boasting an average earnings surprise of 9%. Consequently, Zacks suggests that RGLD's solid rank combined with its top-tier Growth and VGM Style Scores make it a noteworthy candidate for investors' short lists, particularly appealing to those prioritizing growth.

Key Decisions for Investors

• Investors with a growth-focused strategy should consider Royal Gold's projected 35.2% year-over-year earnings growth and recent positive analyst estimate revisions for fiscal 2025.
• Given the Zacks #3 (Hold) rank, investors should monitor RGLD for any potential upgrades in its Zacks Rank or further positive shifts in earnings estimates, as these could indicate strengthening fundamentals.
• Despite the neutral 'Hold' rating, the B-rated Growth and VGM Style Scores, coupled with a 9% average earnings surprise, warrant placing RGLD on a watchlist for potential long-term growth opportunities, especially if the company continues to meet or exceed its strong earnings forecasts.