Royal Gold Stock Hits 52-Week High: What's Driving Its Performance?
Shares of Royal Gold, Inc. RGLD scaled a new 52-week high of $156.35 on Monday before ending the session at a lower at $152.20. The increase was fueled by rising gold prices and RGLD’s solid fourth-quarter 2024 results. The company currently has a market capitalization of $10.1 billion and a Zacks Rank #3 (Hold).What’s Aiding Royal Gold Stock?Solid Q4 & 2024 Results: RGLD reported adjusted earnings per share of $1.63 in the fourth quarter of 2024, beating the Zacks Consensus Estimate of $1.49. The bottom line surged 72% year over year. Royal Gold generated revenues of $203 million, up 32.7% year over year. The upside was driven by higher average metal prices, increased gold sales from Rainy River and Wassa, and higher gold sales from the Peñasquito mine.The company delivered adjusted earnings per share of $5.26 in 2024, beating the Zacks Consensus Estimate of $5.16. The bottom line increased 49% from 2023. RGLD generated record revenues of around $719 million, up 18.8% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Strong Financial Position: Royal Gold is focused on allocating its strong cash flow to dividends, debt reduction and new businesses. The company is now debt-free. Its total liquidity was $1.2 billion as of Dec. 31, 2024, consisting of $190 million in working capital and $1 billion available under the revolving credit facility.In November 2024, the company announced a 13% dividend increase, effective Jan. 17, 2025, raising the payout to 45 cents per share from 40 cents in the prior year. In 2024, the company repaid $250 million of debt, effectively eliminating its total debt. This provides it with the scope to strengthen its portfolio.Increase in Metal Prices: Gold prices were on an uptrend in 2024, which continued in 2025. Several factors have contributed to this upward trajectory, including increased geopolitical tensions, a depreciating U.S. dollar, the potential for monetary policy easing and continuous purchasing by central banks. The yellow metal broke through the $2,900-per-ounce threshold for the first time on Feb. 10 and is currently around $2,906. This is fueled by safe-have demand amid escalating global trade tensions.Silver prices are around $32 per ounce, backed by expectations of steady demand for the metal in the electrification industry and recent expansion noted in the manufacturing sector. This pickup in the prices of gold and silver is likely to improve Royal Gold’s results in the upcoming quarters.RGLD Stock’s Price PerformanceIn the past year, shares of Royal Gold have gained 34.1% compared with the industry’s growth of 38.8%. Image Source: Zacks Investment Research Stocks to ConsiderSome better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, SSR Mining Inc. SSRM and ArcelorMittal S.A. MT. These three companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Carpenter Technology has an average trailing four-quarter earnings surprise of 15.7%. The Zacks Consensus Estimate for the company’s 2025 earnings is pegged at $6.95 per share. CRS shares skyrocketed 170.3% in the last year.ArcelorMittal has an average trailing four-quarter earnings surprise of 4.1%. The Zacks Consensus Estimate for MT’s 2025 earnings is pegged at $3.72 per share. Its shares gained 28.9% in the last year.SSR Mining has an average trailing four-quarter earnings surprise of 155.6%. The Zacks Consensus Estimate for the company’s 2025 earnings is pegged at 85 cents per share. SSRM shares soared 127.3% in the last year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Royal Gold, Inc. (RGLD): Free Stock Analysis Report Silver Standard Resources Inc. (SSRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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