Back to top

Image: Bigstock

Wheaton Precious Metals Corp. (WPM) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Wheaton Precious Metals Corp. (WPM - Free Report) closed the most recent trading day at $45.74, moving +1.33% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.46%. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 6.63%.

Heading into today, shares of the company had gained 15.51% over the past month, outpacing the Basic Materials sector's gain of 9.57% and the S&P 500's gain of 4.75% in that time.

Wheaton Precious Metals Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Wheaton Precious Metals Corp. to post earnings of $0.25 per share. This would mark a year-over-year decline of 13.79%. Our most recent consensus estimate is calling for quarterly revenue of $250.54 million, down 9.94% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Wheaton Precious Metals Corp.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.1% higher. Wheaton Precious Metals Corp. is currently a Zacks Rank #3 (Hold).

Digging into valuation, Wheaton Precious Metals Corp. currently has a Forward P/E ratio of 37.76. This represents a premium compared to its industry's average Forward P/E of 11.5.

It is also worth noting that WPM currently has a PEG ratio of 7.55. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Wheaton Precious Metals Corp. (WPM) - free report >>

Published in