RY (TSE:RY) (NYSE:RY) earned a record $1.56B in its most recent quarter and surprisingly the stock is still trading in the $56 range. The stock has an all time high over $61, and that was when the net earnings was even lower than it is today. Just imagine how much Royal Bank can earn when the economy recovers.
The stock is above its 200-day moving average, and is rebounding off of it. If we extrapolate the trend further into the future, as shown below, the chart looks like it can hit $60 in just a few months.
The stock is near its 52-week high, but is gradually progressing towards its all time high. Of course with record earnings, and excellent capital ratios, the stock should surge past it. Stocks don’t get to their 52 week highs for nothing. Royal Bank is a great long term play and has a good history for increasing its dividends. The current 3.5% yield itself is not too shabby given the upside potential.
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