Wheaton Precious Metals (WPM.US) is a Canada based company that extracts and sells precious metals - primarily gold, silver, palladium and cobalt. In the record year 2020, the company sold over 673,000 ounces of gold, nearly 30 million ounces of silver and over 22,000 ounces of palladium. This year may also turn out to be successful for mining companies due to optimistic analysts forecasts and high demand for precious metals.
Company's share price has been moving in an upward trend in recent weeks as the armed conflict in Ukraine and the turbulent geopolitical situation supported the precious metals rally. Some investors are concerned about stagflation and a significant economic slowdown. In the past, gold has shown that it can hold value during such periods and is a potential 'safe haven' for investors. Some speculators expect Wheaton's earnings to jump in 2022 due to rising precious metal prices caused by the war in Europe. It is worth noting, however, that while the prices of gold and precious metals are not characterized by very high volatility, the mining companies tend to experience sharper price moves. If the conflict in Ukraine de-escalates, demand for precious metals may significantly decrease. As a result, analysts may lower their ratings, which could have a negative impact on Wheaton's stock price.
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Open account Try demo Download mobile app Download mobile appLast year, the company became the subject of interest of investment funds, which increased their position in the third quarter of 2021. The most important ones include: Rockefeller Capital Managemet (increase by 12.8%), TwoSigma (increase by 123.7%), and Skandinaviska Enskilda Banken (increase by 16.4%).
Based on analyst ratings published on Marketbeat.com, Wheaton currently has 8 'Buy' and one 'Hold' ratings, indicating a positive sentiment towards the company. Price consensus currently stands at $ 56.75, which means that price has approximately 20% growth potential. The well-known investor from the precious metals market, Rick Rule also spoke positively about the company's future.
Wheaton will present a detailed report for Q4 2021 and the entire fiscal year 2021 on March 10 after market close.
Wheaton Precious Metals (WPM.US) stock price broke above upper limit of the triangle formation and is currently testing local resistance at $48.60 which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Should break higher occur, upward move may accelerate towards August 2020 highs at $57.65. On the other hand, if sellers manage to regain control, then another downward impulse towards support at $42.70 may be launched. Source: xStation5
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