For investors aiming to use the momentum of high-performing companies, a mixed method of technical and fundamental study can be a strong plan. One technique uses filters for stocks that show both solid basic business expansion and sound finances, and also display positive technical formations that hint at a possible upward move. This two-part method tries to find companies where solid basics create a base for continued price gains, while technical arrangements point to a good time to buy as the stock gains speed. The aim is to locate investments where the narrative of expansion is supported by the market's price movement.
Wheaton Precious Metals Corp (NYSE:WPM) is a distinct participant in the mining industry, functioning as a leading precious metals streaming company. In contrast to conventional miners that carry the capital expenses and operational hazards of managing mines, Wheaton gives early funding to mining companies for the option to buy a part of their future precious metal output at low, set prices. This operational framework gives notable exposure to commodity prices while keeping a high-profit, low-asset framework with steady long-term cash generation.
Solid Basic Expansion Picture
A close look at Wheaton's basics shows a company performing very well, which is the first key part of the filtering plan. The company's fundamental analysis report gives it a high total score of 8 out of 10, with especially good marks in Expansion (8), Earnings (9), and Financial Soundness (9).
Expansion Measures:
- Strong Recent Results: In the last year, Wheaton has posted impressive expansion, with Earnings Per Share (EPS) rising 61.01% and Sales going up by 50.33%.
- Steady Past Pattern: The company has shown a reliable history, with EPS increasing at a typical yearly pace of 21.22% over recent years.
- Good Future View: Expert projections indicate ongoing solid expansion, with expected typical yearly EPS growth of 15.55% and Sales growth of 14.31% in the near future.
Earnings and Financial Strength:
- Outstanding Profitability: The streaming framework is clear here. Wheaton has a Gross Profit of 68.59%, an Operating Profit of 63.50%, and a Net Profit of 54.72%, each placed in the best group of its sector.
- High Earnings: The company produces a good Return on Invested Capital (ROIC) of 12.78%, showing effective use of money.
- Very Sound Finances: With almost no borrowings (Debt/Equity of 0.00) and high cash availability (Current Ratio of 8.09), Wheaton has excellent financial soundness, giving steadiness and option to finance new streaming deals.
This basic strength is exactly what the filtering approach looks for. As described in the view of expansion investing, companies with quickening profits and sales, paired with high earnings and a clear balance sheet, are top picks for continued price gains. Wheaton’s framework naturally supplies these traits, giving expansion linked to both commodity cycles and the achievement of its partner mines.
Positive Technical Upward Move Formation
The second part of the plan includes spotting positive technical formations, and Wheaton’s chart is now showing force. The technical analysis report gives a top score of 10/10, with a good Setup Score of 8.
Main Technical Notes:
- Clear Rising Pattern: Both the short-term and long-term directions are firmly positive, with the stock price staying well above its important moving averages (20, 50, 100, and 200-day SMAs), which are all in an upward arrangement.
- Market Leadership: Wheaton has been a notable performer, doing better than about 94% of all stocks over the past year with a gain of over 118%. It is now trading close to new 52-week peaks.
- Pause and Upward Move Sign: The report states that prices have been pausing in an area between about $112.56 and $126.54 over the last month, which has assisted in lowering price swings. A recent "Pocket Pivot" sign, where the stock advances on trading volume higher than any decline volume in the previous 10 days, hints at buying interest and a possible restart of the rising pattern.
- Clear Risk Points: The study finds definite support near the $117.38 - $117.87 area and resistance just above present prices around $124.75 - $125.51. A clear advance above this resistance could signal the next step upward.
This technical view matches the aim of finding stocks in a state of force. The mix of a strong long-term rising pattern, a time of healthy pause, and a recent positive volume sign creates a situation where basic expansion may be ready to turn into further technical price progress.
Price Assessment and Points
While expansion and momentum are clear, price assessment shows a more detailed view. Wheaton trades at a higher price based on standard earnings measures, with a P/E ratio of 55.69. However, this is seen as somewhat low compared to its industry group. More significantly, the market seems to be valuing the company's outstanding expansion path and high-quality earnings. The low PEG ratio and the company's excellent return measures suggest the higher price may be reasonable for investors focused on expansion and quality.
Summary
Wheaton Precious Metals Corp shows a positive example for an expansion-and-momentum plan. The company’s distinct streaming framework drives outstanding basic expansion, high earnings, and very clean financial soundness, the needed qualitative and numerical factors for a lasting expansion stock. At the same time, its stock price shows this force through a strong and steady rising pattern, now displaying signs of a pause and a possible new upward move. This meeting of solid basics supporting a positive technical formation is exactly what the mixed filtering method is made to find.
Interested in locating more stocks that match this picture of solid expansion paired with positive technical formations? You can review the set "Strong Growth Stocks with good Technical Setup Ratings" filter here.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The analysis presented is based on data and reports available at the time of writing. Investing involves risk, including the potential loss of principal. Always conduct your own thorough research and consider your individual financial situation and risk tolerance before making any investment decisions.
