And the precious metals company could rise even more due to strong earnings and rising prices. But another likely reason is Big Money lifting the stock.
Royal Gold Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And Royal Gold has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals RGLD has made the last year. Each green bar signals big trading volumes as the stock ramped in price:
In the last year, the stock attracted nine Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
- 1-month outperformance vs. Materials Select Sector SPDR ETF (+8.7% vs. XLB)
Outperformance is important for leading stocks.
Royal Gold Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, Royal Gold has been growing sales and earnings well. Take a look:
- 1-year sales growth rate (+23.5%)
- 3-year EPS growth rate (+81.9%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, RGLD has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
RGLD has a lot of qualities that are attracting Big Money. It’s made the Top 20 report 36 times since 1990, with its first appearance on 01/27/2003…and gaining 405.5% since. Big Money has been a fan for a while. The blue bars below show when Royal Gold was a top pick:
It’s been a top stock in the materials sector according to the MAPsignals process. I wouldn’t be surprised if RGLD makes additional appearances in the years to come. Let’s tie this all together.
Royal Gold Price Prediction
The Royal Gold rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside, plus it pays a current dividend of nearly 1.3%. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in RGLD at the time of publication.
Learn more about the MAPsignals process here.