All You Need to Know About Royal Gold (RGLD) Rating Upgrade to Buy

Core Viewpoint - Royal Gold (RGLD) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Performance of Royal Gold - For the fiscal year ending December 2025, Royal Gold is expected to earn $6.78 per share, reflecting a 28.9% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Royal Gold has risen by 7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Royal Gold's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].