Royal Gold, Inc., through its subsidiaries, acquires and operates precious metals royalties in exploration and production companies. The company was founded in 1981 and has a market cap of $4.47 billion.
Royal Gold has been gaining on higher gold prices, but shares also got a boost after the company reported strong Q2 results in mid August that included record revenue and strong earnings growth.
Revenue for the period was a record, up 46% from last year to $59 million. Earnings also spiked, jumping to 39 cents per share, up from 21 cents last year.
The good quarter was driven by a simple combination of increased production and higher realized prices, scoring an average sale price of $1.369 from $1.089 last year.
We saw some decent movement in estimates off the good quarter, with the current year adding 6 cents to $1.84. The next-year estimate gained 16 cents to $1.98, a solid 7.5% growth projection.
In light of recent gains, shares do look a bit pricey, trading with a PEG ratio of 6.2, well above the benchmark of 1 for value.
On the chart, few stocks have been as strong as RGLD for the last two months, hitting a string of new highs as gold does the same. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
ROYAL GOLD INC (RGLD): Free Stock Analysis Report
Zacks Investment Research
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