WHEATON PRECIOUS METALS CORP (NYSE:WPM) – A High-Growth Stock with Strong Fundamentals and Bullish Technical Setup

Investors looking for high-growth opportunities often use both fundamental and technical analysis to find stocks with strong business performance and positive price trends. One approach is to look for stocks with solid growth fundamentals, like increasing revenue and earnings, while also showing promising technical breakout patterns. Wheaton Precious Metals Corp (NYSE:WPM) fits this description, with strong financial health, profitability, and a favorable technical setup.

Fundamental Strength Supports Growth Potential

Wheaton Precious Metals, a top precious metals streaming company, stands out because of its high-quality portfolio of long-life, low-cost assets. ChartMill’s fundamental analysis report gives WPM an 8 out of 10 overall, with high scores in profitability (9/10) and financial health (9/10). Key points include:

• Strong Profit Margins: WPM has a gross margin of 67.19% and an operating margin of 61.53%, better than 96% of its competitors in the Metals & Mining industry.
• Impressive Growth Metrics: Revenue rose 46.79% YoY, while EPS increased 48.15% over the past year. Analysts expect continued growth, with 8.61% annual revenue growth in the coming years.
• Healthy Financial Position: The company has no debt (Debt/Equity of 0.00) and a high Altman-Z score of 101.54, showing low bankruptcy risk.

These fundamentals match growth investing principles, where companies reinvest earnings to expand rather than paying high dividends. WPM’s focus on streaming agreements—securing future production at low costs—positions it well for long-term growth in the precious metals sector.

Technical Setup Points to Breakout Potential

From a technical view, WPM’s chart shows a positive setup, earning a technical rating of 10/10 and a setup rating of 7/10 in ChartMill’s technical analysis report. Key observations include:

• Long-Term Uptrend Holding: The stock remains in a positive long-term trend, with price consolidating near the top of its 52-week range ($55.47 - $103.81).
• Support Levels Offer Protection: Three key support levels are identified, including a strong zone between $91.93 - $92.90, backed by moving averages and trendlines.
• Lower Volatility & Consolidation: Recent price action has tightened, suggesting a possible breakout. A move above resistance could signal more upside, while support levels provide logical stop-loss areas.

The mix of strong fundamentals and a bullish technical pattern makes WPM a compelling choice for growth-focused investors. The stock’s ability to outperform 90% of the market over the past year further supports its momentum.

Why This Strategy Works

Growth stocks with good technical setups often benefit from a "virtuous cycle": improving fundamentals attract buyers, driving price momentum, which then draws more investor interest. By focusing on companies like WPM—which show high profitability, financial stability, and strong growth—investors can limit downside risk while positioning for potential gains.

For those interested in similar opportunities, ChartMill’s Strong Growth Stocks with Good Technical Setup Ratings screen offers more high-conviction ideas.

Disclaimer: This article is not investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.