WHEATON PRECIOUS METALS CORP (NYSE:WPM) Emerges as a High-Growth Momentum Stock with Strong Technical Setup

Investors looking for high-growth momentum stocks with solid technical setups often focus on companies showing faster earnings, wider profit margins, and rising analyst estimates, all while displaying positive price movement. The ChartMill High Growth Momentum (HGM) Rating blends these growth factors with technical breakout patterns to spot stocks likely to keep performing well. WHEATON PRECIOUS METALS CORP (NYSE:WPM) stands out as a potential fit for this approach, with an HGM score of 6, a Technical Rating of 10, and a Setup Quality score of 7.

Why WPM Matches the High Growth Momentum Profile

The HGM Rating checks earnings speed, sales increases, free cash flow growth, and analyst outlook—key factors for momentum-focused investors. WPM shows strength in these areas:

• Earnings Growth:
  • EPS rose 26.9% year-over-year (TTM), with the latest quarter climbing 52.9% compared to the same period last year.
  • Future estimates point to more growth, with next quarter’s EPS projected to rise 68.5% year-over-year.
• Sales Momentum:
  • Revenue grew 32.8% over the past year, with the most recent quarter up 58.5% year-over-year.
  • Steady sales growth highlights strong demand for precious metals streaming.
• Profit Margins & Cash Flow:
  • Free cash flow per share increased 69.1% over the past year, showing better operational efficiency.
  • While quarterly profit margins have varied, the trailing twelve-month margin remains solid at 41.2%.
• Analyst Revisions:
  • Revenue estimates for the next year have been raised by 3.8% over the last three months, reflecting optimism.

These numbers match the CANSLIM and Minervini strategies, which prioritize earnings momentum and institutional backing. Though WPM’s HGM score of 6 isn’t the top, its steady growth metrics make it an interesting pick in the metals & mining sector.

Technical Strength and Setup Quality

WPM’s technical picture is even stronger, as seen in its Technical Analysis Report:

• Top Technical Rating (10/10):
  • The stock is in a clear uptrend across all timeframes, trading close to 52-week highs.
  • Relative strength is in the 89th percentile, beating 89% of the market.
• Good Setup (7/10):
  • The stock has held between $85.59 and $96.83 over the past month, suggesting a possible breakout.
  • Support levels are clear at $90.06–$91.43, offering a sensible stop-loss zone.
  • Lower volatility during consolidation hints at a potential breakout.

The report indicates a possible entry above $93.99, aiming for higher gains while keeping risk low (~4.2% stop-loss). With the S&P 500 in a positive short-term trend, WPM’s leading role in metals adds confidence.

Conclusion

WPM combines steady growth with strong technicals, making it a candidate for momentum investors. While its HGM score shows solid but not outstanding growth, its technical setup presents a good risk/reward balance.

For more high-growth momentum stocks with strong technical setups, check the High Growth Momentum Breakout Screen.

Disclaimer: This analysis is not investment advice. Always do your own research and manage risk before trading.