In growth investing, joining a strict technical system with an attention to fundamental momentum can be a strong method. The process used here joins Mark Minervini’s Trend Template, a step-by-step list for finding stocks in clear, strong uptrends, with a filter for High Growth Momentum (HGM). The aim is to locate firms that are showing both firm price movement and market leadership, and are also supported by quickening business foundations. This two-part method tries to catch stocks that are in the correct technical phase for a large rise while having the basic earnings and sales force to maintain it.
Wheaton Precious Metals Corp. (NYSE:WPM) appears as a candidate from this joined filtering process. As a top precious metals streaming company, its business structure gives leveraged contact to commodity prices without the working risks of mining. The newest technical and basic information indicates the stock is matching the standards looked for by this growth and momentum-centered plan.
Technical Match with the Minervini Trend Template
Mark Minervini’s Trend Template is made to sort for stocks in a clear Stage 2 uptrend, making sure all main moving averages are lined up in a bullish way and the stock is displaying relative strength. A look at WPM’s chart and main measures shows it fits these strict technical states:
- Price Above Main Moving Averages: The stock’s last price of $147.83 trades well above its rising 50-day ($138.92), 150-day ($115.28), and 200-day ($108.88) simple moving averages. This meets the template's first need that the present price is above all three averages, confirming the long-term direction is positive.
- Moving Average Order: The 50-day SMA sits above both the 150-day and 200-day SMAs, and the 150-day SMA is above the 200-day SMA. This ordered, rising line of averages is a standard sign of a firm, speeding uptrend and is a central idea of the Minervini process to confirm buyer command across time periods.
- Nearness to Highs: At its present price, WPM is trading within 25% of its 52-week high of $165.76 and is more than 30% above its 52-week low of $68.03. The template stresses focusing on strength, and stocks close to their highs often hold the momentum to move through to new levels.
- Better Relative Strength: With a ChartMill Relative Strength (CRS) score of 95.08, WPM has done better than about 95% of the market over the past year. Minervini points out that real market leaders show high relative strength, as it signals institutional need and a stock’s skill to separate from general market softness.
Fundamental Momentum for Growth Investors
While the Trend Template makes sure the technical wind is behind the stock, the High Growth Momentum score tries to find the basic motor pushing that move. WPM’s newest financial results show several signs of strong quickening:
- Earnings Growth Jump: The company is showing fast growth in profit. Earnings Per Share (EPS) for the trailing twelve months (TTM) grew by 61% year-over-year. More notably, the most recent quarter’s EPS jumped 83.4% compared to the same quarter last year, showing the growth speed is not just kept but speeding up.
- Steady Earnings Surprises: WPM has passed analyst EPS guesses in each of the last four quarters, with an average pass of 4.94%. This steady skill to go past guesses often works as a trigger, pushing positive changes and more investor notice, a force Minervini notes in his SEPA (Specific Entry Point Analysis) plan.
- Firm Sales Growth: Top-line growth is equally strong, with TTM revenue up over 50% year-over-year. Sales in the last quarter grew 54.5%, displaying firm need for the company’s streaming agreements.
- Getting Better Profitability: The company’s profit margin in the last reported quarter was 77.1%, a large increase from 58.1% in the prior quarter and 23.2% two quarters before that. This direction of growing margins hints at working leverage and pricing command, main features of high-quality growth firms.
- Positive Analyst Changes: Analysts are noting the firm results, lifting their guesses. The average EPS guess for the next year has been changed upward by 6.4% over the last three months, and revenue guesses have been changed up by 6.5%. Upward changes are a key part of momentum investing, as they show growing belief in the company’s future and can support more buying.
Technical Condition and Present Position
ChartMill’s own technical report gives a short summary of WPM’s position. The stock gets a perfect Technical Rating of 10/10, showing outstanding condition across short and long-term time periods. The report states its steady pattern of rising prices and leader status, doing better than 95% of the market. The long-term direction is scored as positive.
However, the report also gives a note of care for immediate entry, giving a Setup Rating of 2/10. It states that while the technicals are very good, the stock may be "stretched" in the short term after its recent run, trading in the middle of a wide one-month band. For investors following a strict plan like Minervini’s, this hints at waiting for a helpful pause or a move back toward support levels (stated in the report at places like $142.92 and $130.89) to locate a higher-chance, lower-risk entry point. You can see the full, itemized technical study here: ChartMill Technical Report for WPM.
Locating Like Chances
Wheaton Precious Metals shows the kind of candidate that comes up when filtering for both strong trends and basic momentum. For investors wanting to find other stocks that fit this joined "High Growth Momentum + Trend Template" standards, the filter is ready to use. You can locate more possible candidates by using the filter here.
Disclaimer: This article is for information and learning only. It is not a suggestion to buy or sell any security. The study is based on given data and filters, which can change. Investing includes risk, including the possible loss of main funds. Always do your own study and think about talking with a qualified financial advisor before making any investment choices. Please read our full disclaimer here.
