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Wheaton Precious Metals Corp. (WPM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Wheaton Precious Metals Corp. (WPM - Free Report) closed at $49.72, marking a -0.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.

Heading into today, shares of the company had gained 28.68% over the past month, outpacing the Basic Materials sector's loss of 2.72% and the S&P 500's gain of 1.48% in that time.

Wheaton Precious Metals Corp. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Wheaton Precious Metals Corp. to post earnings of $0.29 per share. This would mark a year-over-year decline of 17.14%. Meanwhile, our latest consensus estimate is calling for revenue of $266.67 million, down 13.21% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $1.12 billion. These totals would mark changes of +4.46% and +5.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Wheaton Precious Metals Corp.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.85% lower. Wheaton Precious Metals Corp. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Wheaton Precious Metals Corp.'s current valuation metrics, including its Forward P/E ratio of 42.69. For comparison, its industry has an average Forward P/E of 10.3, which means Wheaton Precious Metals Corp. is trading at a premium to the group.

Also, we should mention that WPM has a PEG ratio of 8.54. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Miscellaneous industry currently had an average PEG ratio of 2.11 as of yesterday's close.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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