Gold Royalty(US:GROY) ZACKS·2025-11-03 10:20Core Viewpoint - Gold Royalty Corp. (GROY) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are crucial for near-term stock price movements, making the Zacks rating system beneficial for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling actions [5]. Business Outlook for Gold Royalty - The upgrade in rating for Gold Royalty suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and stock movements, highlighting the importance of tracking these revisions for investment decisions [7]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Gold Royalty's Earnings Estimates - For the fiscal year ending December 2025, Gold Royalty is expected to earn -$0.01 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 20% over the past three months [9]. Overall Market Position - The upgrade to Zacks Rank 1 places Gold Royalty in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].