| Gold stocks ALWAYS lag gold… Until this happens |
Gold pulled back in recent days.
However, we do expect it to regain lost momentum.
With geopolitical and economic tensions still high, coupled with even more interest rate cuts from the Federal Reserve, we do expect to see further upside in gold prices.
While we can always buy physical gold, another smart way to gain exposure is with a yielding gold stock, such as Royal Gold (RLGD).
With a yield of 1.02%, Royal Gold (RGLD) acquires and manages precious metal streams and royalties. The company acquires stream and royalty interests or finances projects that are in production, development, or in the exploration stage in exchange for stream or royalty interests in gold, silver, copper, nickel, zinc, lead, molybdenum, and other metals.
Since the year began, shares of RGLD rocketed from a low of about $130 to a high of $210. That was thanks in large part to gold’s historic rally to a high of just over $4,381. Now back to $175.82, it pulled back with gold.
Again, we strongly believe gold and related stocks like RGLD will rally higher.
In addition, analysts are incredibly bullish on the Royal Gold stock.
In early October, analysts at CIBC raised their price target on RGLD by $25 to $250. The firm raised that price target to reflect its higher gold price forest of $4,500 for 2026.
Bank of America raised its price target by $10 a share to $203.
Raymond James raised its price target by $53 to $264, with an outperform rating, citing RGLD’s strong royalty and streaming business model.
Scotiabank raised its price target by $52 to $246, with an outperform rating.
Earnings have been strong, too.
In its most recent quarter, Royal Gold’s EPS OF $2.06 did miss by 10 cents. Revenue of $252.07 million, up 30.1% year over year, missed by $7.96 million. That revenue of $252.07 million and operating cash flow of $174 million were incredible achievements for the company, driven by strong gold and silver prices.
The company also expanded its footprint with the acquisition of Sandstorm Gold and Horizon Copper. In addition, the mine life of Mount Milligan was extended to 2045, which adds even more value to RGLD’s largest asset.
Royal Gold also says it plans to pay back its $775 million credit facility draw by mid-2027, which will help drive the company’s already impressive growth. It also achieved an adjusted EBITDA margin of 82% and was able to raise its dividend by 12.5% year over year.
With a yield of 1.02%, strong earnings growth, bullish analysts, and gold still expected to rally higher, Royal Gold (RGLD) is also an attractive opportunity. As long as gold prices continue to push higher, Royal Gold should continue to be a strong beneficiary. Plus, while we wait for further upside in gold and in the RGLD stock, we can collect RGLD yield.
Trending Now: How high will gold surge?
Right now, gold might be the hottest investment on the planet.
It just soared to new all-time highs breaking $4,200.
And so far this year, it's been beating every popular investment out there — the S&P 500, tech stocks in the Nasdaq and even Bitcoin.
Gold analyst Sean Brodrick called this historic rally every step of the way.
After the election last year, Brodrick went out on a limb and declared the yellow metal was going much, much higher.
Everybody laughed at him at the time.
But as the trade wars sent stocks into a tailspin, gold surged to $3,150 — just like Sean predicted.
And that's just the start.
Sean says 4 powerful market forces will push it to new record highs.
In fact, his research says gold could soar to $6,900 per ounce — more than double from the current levels.
And right now, investors have a rare chance to make even bigger gains.
Without buying a single ounce of bullion!
Instead, this little-known investment has a long history of returning 13 times … 21 times … 157 times … even a surprising 1,000 times more than physical gold.
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Written by Ian Cooper