Denver-based Royal Gold is in an elite group. Gold miners are having a field day. Three gold mining stocks rose to an all-time high Wednesday as the price of gold keeps hitting fresh highs. On Thursday, the Relative Strength (RS) Rating for Royal Gold stock jumped into a new percentile as it got a lift from 66 to 75.
The upgraded 75 RS Rating shows that Royal Gold stock is outperforming 75% of all stocks, regardless of industry.
Royal Gold Pivots Toward Strong Growth
Like other mining firms, watchlist candidate Royal Gold is rebounding nicely from a rough period early last year. In the March 2024-ended quarter Royal gold reported a 5% dip in earnings on a 13% drop in revenue. The next two quarters it reported EPS gains of 42% and 93% while revenue grew 21% and 40%.
Consensus of analysts polled by FactSet is for the mining firm to report a 60% pop in EPS this quarter on 20% revenue growth, with even stronger growth seen later this year.
Royal Gold hit an all-time high earlier than the rest of the pack, topping 155 on Oct. 21 last year. From there it consolidated, dropping to a 130.67 low on Dec. 30. It's racing toward a fresh high again, and Thursday afternoon traded above 144, up a tiny fraction for its fourth higher close in a row.
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Royal Gold is trying to complete a double bottom base with a 154.18 buy point. See if the stock can break out in heavy trade. The company is expected to report its next quarterly numbers on or around Feb. 12.
Among its other ratings Royal Gold has a terrific 96 EPS Rating out of a best-possible 99. It has an equally lofty 96 Composite Rating, a group of key fundamental and technical metrics. The best growth stocks have a 90 or better Composite.
Ready To Join Peers Hitting Fresh Highs?
Royal Gold holds the No. 12 rank among its peers in the Mining-Gold/Silver/Gems industry group. Agnico-Eagle Mines, Alamos Gold and Harmony Gold Mining are among the top 5 highly rated stocks in the group.
On Wednesday, Agnico-Eagle, Alamos Gold and AngloGold Ashanti (AU) all hit record highs, and landed on IBD top stock lists.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database. Top-performing stocks tend to have an RS Rating north of 80 in the early stages of their moves. See if Royal Gold can continue to show renewed price strength and hit that benchmark.
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