Stock of the Day

Wheaton Precious Metals (WPM)

$68.01

-$1.94 (-2.8%)

Market Cap: $31.73B

About Wheaton Precious Metals

Wheaton Precious Metals Corp. primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp.

and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.

Wheaton Precious Metals Bull Case

Here are some ways that investors could benefit from investing in Wheaton Precious Metals Corp.:

• The company reported earnings per share (EPS) of $0.34 for the latest quarter, meeting analysts' expectations, which indicates strong financial performance and stability.
• Wheaton Precious Metals Corp. has a high net margin of 50.05%, suggesting efficient management and profitability, which can lead to higher returns for investors.
• Institutional ownership stands at 70.34%, indicating strong confidence from large investors, which can be a positive signal for retail investors.
• The current stock price is $62.40, which is below the average target price of $71.67 set by analysts, suggesting potential for price appreciation.
• Recent upgrades from multiple analysts, including a "buy" rating from UBS Group and a price target increase from Jefferies Financial Group, reflect positive market sentiment and growth expectations.

Wheaton Precious Metals Bear Case

Investors should be bearish about investing in Wheaton Precious Metals Corp. for these reasons:

• The company reported revenue of $308.25 million, which fell short of the consensus estimate of $324.57 million, indicating potential challenges in meeting growth expectations.
• The price-to-earnings (P/E) ratio is 46.57, which is relatively high, suggesting that the stock may be overvalued compared to its earnings, posing a risk for new investors.
• Despite a strong net margin, the return on equity (ROE) is 8.85%, which may be considered low in comparison to other investment opportunities, indicating less efficient use of equity capital.
• The stock has experienced volatility, with a 12-month high of $68.64 and a low of $38.57, which may deter risk-averse investors.
• The dividend yield is only 0.99%, which may not be attractive for income-focused investors looking for higher returns from dividends.

Recent News

• Wheaton Precious Metals price target raised to 5,800 GBp from 5,700 GBp at Berenberg (markets.businessinsider.com)
• Wheaton Precious Metals: Beneficiary Of The Basel III Endgame (seekingalpha.com)