Why Mark Minervini may look into WHEATON PRECIOUS METALS CORP (NYSE:WPM)

Our stock screener has spotted WHEATON PRECIOUS METALS CORP (NYSE:WPM) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Does WPM pass the Minervini Trend Template check?

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for WPM:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

ChartMill's Evaluation of Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth and profitability elements, including EPS and revenue growth, accelleration, surprises and revisions. In the case of WPM, the assigned 5 reflects its growth potential:

Explosive Earnings Growth

• WPM has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 21.21% increase. This indicates improving financial performance and the company's effective management of its operations.
• Over the past year, WPM has demonstrated 24.74% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• WPM has demonstrated strong quarter-to-quarter (Q2Q) revenue growth of 21.39%, reflecting its ability to generate consistent increases in sales. This growth highlights the company's effective market positioning and its potential for continued success.
• The 1-year revenue growth of WPM (26.44%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• Analysts' average next Quarter EPS Estimate for WPM has witnessed a 4.96% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, WPM showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• The operating margin of WPM has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• WPM has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• Maintaining a Debt-to-Equity ratio of 0.0, WPM demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.

Institutional Confidence & Market Strength

• With institutional shareholders at 71.39%, WPM demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.
• WPM has achieved an impressive Relative Strength (RS) rating of 96.14, showcasing its ability to outperform the broader market.

How do we evaluate the setup for WPM?

ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, WPM has a 6 as its setup rating, indicating its current consolidation status.

WPM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 77.62, a Stop Loss order could be placed below this zone.

For an up to date full technical analysis you can check the technical report of WPM

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More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.