Royal Gold saw an improvement in its IBD SmartSelect Composite Rating Thursday, from 94 to 96.
The upgrade means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good item to have on your checklist when looking for the best stocks to buy and watch.
Royal Gold is currently forming a double bottom, with a 154.18 entry. Look for the stock to break out in heavy trade at least 40% higher than normal.
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The stock sports a 96 EPS Rating, which means its recent quarterly and annual earnings growth tops 96% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
The company posted 93% earnings growth for Q3. It has now posted accelerating EPS gains for two consecutive quarters. Sales growth increased 40%, up from 21% in the prior report. The company has now posted accelerating growth in each of the last two reports. The company's next quarterly report is expected on or around Feb. 12.
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 ADR are among the top 5 highly-rated stocks within the group.
