Royal Gold, Inc (USA
RGLD
Real-time BATS EXCHANGE - 12/13 09:46:46 pm
79.69USD
+0.54%

Good timing to anticipate the return of volatility

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David Meurisse
Contributor / Partner

Strategy published on : 12/06/2018 | 16:50

long trade
Live

Entry price : 76.38$
Target : 89.7$
Stop-loss : 69.4$
Potential : 17.44%

There has been very little movement in Royal Gold, Inc (USA)'s share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Investors have an opportunity to buy the stock and target the $ 89.7.

Summary

● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 73.15 USD in weekly data.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Analysts covering this company mostly recommend stock overweighting or purchase.


Weaknesses

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's earnings releases usually do not meet expectations.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 47.1 and 35.35 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 82.12 USD

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