Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Royal Gold (RGLD)
Based in Denver, CO, Royal Gold, together with its subsidiaries, acquires and manages precious metals stream and royalty interests, with a primary focus on gold. Royal Gold manages its business under two segments:
RGLD sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is up 3.7% and up 0.5% over the past one-week and four-week period, respectively, and Royal Gold has gained 46.2% in the last one-year period as well. Additionally, an average of 474,412.25 shares were traded over the last 20 trading sessions.
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Momentum investors also pay close attention to a company's earnings. For RGLD, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.58 to $7.11 per share for 2025. RGLD boasts an average earnings surprise of 9%.
RGLD should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Royal Gold, Inc. (RGLD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).