Investors looking to join solid technical patterns with solid fundamental growth frequently use methods that mix both fields. One example is the method made popular by Mark Minervini, which focuses on the Specific Entry Point Analysis (SEPA) system. This approach needs a stock to first show a solid technical base, as outlined by the Minervini Trend Template, making sure it is in a verified and sound uptrend. Second, it requires solid fundamental momentum, usually shown by speeding up earnings and revenue growth, positive estimate changes, and growing profit margins. This two-step filtering process tries to find market leaders early in their main price increases, mixing the momentum of price action with the driver of company results.
A present example showing this mixed method is Wheaton Precious Metals Corp. (NYSE:WPM), a top precious metals streaming company. The stock has lately appeared on scans made to find securities that meet both the Minervini Trend Template and standards for high growth momentum.
A Standard Technical Trend
WPM’s chart makes a solid case for the technical "trend" part of the Minervini SEPA method. The Trend Template’s main job is to scan for stocks in a clear Stage 2 uptrend, skipping basing or falling issues. WPM satisfies this key requirement well.
- Moving Average Arrangement: The stock’s price is clearly above all main simple moving averages (SMAs). Importantly, the shorter 50-day SMA ($116.13) trades above both the 150-day ($104.29) and 200-day ($99.22) SMAs, and the 150-day SMA is above the 200-day. This ordered arrangement points to coordinated buying pressure across several timeframes.
- Trend Path: Both the 150-day and 200-day moving averages have an upward slope, verifying the long-term trend is positive. The short-term trend is also labeled positive.
- Nearness to Highs: A central Minervini idea is to focus on strength, not weakness. WPM’s present price is within 2% of its 52-week high of $146.77, showing it is a market leader, not a follower. At the same time, the price is over 140% above its 52-week low, verifying a solid recovery and uptrend are already in place.
- Better Relative Strength: Maybe most revealing, WPM has a ChartMill Relative Strength (CRS) score of 96.4. This means it has done better than 96% of all stocks over the past year, a sign of the market leadership Minervini’s method tries to find.
This technical view answers the "which stock" question positively: WPM is in a solid, confirmed uptrend.
The Driver of High Growth Momentum
A solid chart is only part of the story. The "why" for the move is often seen in fundamental speeding up. For high-growth investors, WPM shows several main measures that point to underlying business momentum, matching the "fundamentals" and "catalyst" parts of the SEPA method.
- Earnings Speeding Up: The company is showing notable earnings growth. Year-over-year EPS growth for the last reported quarter was 83.4%, after an even stronger 91.2% growth in the quarter before. This sequential speeding up is a positive sign.
- Solid Revenue Growth: Top-line growth is also notable, with recent quarterly sales growing by 54.5% and 68.3% in the last two quarters, in order. This points to solid demand for its streaming agreements.
- Analyst Belief: The fundamental story is getting notice. Analyst estimates for next year’s earnings have been changed upward by 9.5% over the last three months, hinting at increasing belief in the company’s future profits.
- Profit Margin Growth: The company’s profit margin in the last reported quarter was 77.1%, a notable growth from 58.1% the quarter before. Getting better margins can be a strong force for earnings growth and often shows operational efficiency or good pricing.
These measures show that the stock’s solid price trend is backed by real business performance, a mix that high-growth momentum methods focus on.
Present Technical Condition and Pattern
ChartMill’s own analysis gives a short summary of WPM’s technical position. The stock gets a perfect Technical Rating of 10/10, showing very good health across short and long-term timeframes. The report notes its steady outperformance of the wider market and increasing volume on recent gains, which can point to institutional interest.
However, the Setup Quality Rating is now a 3. This is a key difference for traders. While the trend is perfect, the report hints the stock may be stretched in the short term, having traded in a wide band over the past month and now sitting near the top of that band. For users of the Minervini method, this shows the difference between finding a solid stock and timing a best entry. The present changes may not show the "volatility contraction pattern" (VCP) that describes a low-risk Specific Entry Point. Investors might see this as an example for a watchlist, waiting for a possible consolidation or pullback to a set support level, such as those found near $102.26 or $99.20, to better the risk/reward setup of an entry.
You can see the full, detailed technical analysis for WPM on its ChartMill Technical Report page.
Locating Like Chances
Wheaton Precious Metals Corp. shows the kind of security that passes through a two-part filter of strict trend-following and growth momentum standards. For investors wanting to find other stocks that meet similar strict needs, the preset scan that found WPM can be a useful beginning point.
You can look for more possible examples by going to the High Growth Momentum + Trend Template scan on ChartMill.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The analysis is based on given data and does not make up investment advice. All investing has risk, including the chance of losing the original amount. You should do your own study and talk with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.
