Wheaton Precious Metals Acquires New Metal Stream – Impact On Stock?

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WPM
Wheaton Precious Metals

Wheaton Precious Metals stock (NYSE: WPM) is up more than 6% in just the last one week, outperforming the S&P 500 which was down almost 4% during this time. If you look at the change over the last ten days and one month, WPM stock is up (1.3% and 2.6%, respectively) and has outperformed the broader market on both the occasions. The rise in WPM stock was driven by the announcement of WPM entering in a metal purchase agreement with Alliance Metals International, a subsidiary of Adventus Mining Corporation. Per this agreement, WPM will acquire gold and silver streams from Adventus Mining’s Curipamba Project based in Ecuador. Curipamba is expected to be a high-quality, low-cost copper-gold mine with a 10-year mine life. This will further strengthen WPM’s diversified portfolio of low-cost, high-quality, long-life mines. The company expects that the Curipamba Project has significant exploration potential with the recent discovery of the Agua Santa near El Domo mine. Additionally, gold prices have also been on an upswing in the last one month leading to favorable investor sentiment about WPM stock.

Now, is WPM stock set to rise further or could we expect some correction? We believe that there is a 52% chance of a rise in WPM stock over the next month (21 trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on WPM Stock Chance of Rise. To understand WPM’s business profile, see our analysis on Wheaton Precious Metals Revenues.

Relevant Articles
  1. Why Wheaton Precious Metals Stock Lost 20% In Value?
  2. Wheaton Precious Metals Stock To Retain Strength In 2022
  3. Wheaton Precious Metals Reports Record Numbers – How’s The Stock Reacting?
  4. How The Drop In Gold And Silver Prices Has Affected Wheaton Precious Metals Stock
  5. Company Of The Day: Wheaton Precious Metals
  6. What’s Behind Wheaton Precious Metals Stock’s Recent Rise?

Twenty-One Day: WPM 2.6%, vs. S&P500 -1.8%; Outperformed market

(39% likelihood event; 52% probability of rise over next 21 days)

  • WPM stock increased 2.6% the last twenty-one trading days (one month), compared to a broader market (S&P500) drop of 1.8%
  • A change of 2.6% or more over twenty-one trading days is an event with a 39% likelihood, which has occurred 969 times out of 2514 in the last 10 years
  • Of these 969 instances, the stock has seen a positive movement over the next twenty-one trading days on 500 occasions
  • This points to a 52% probability for the stock rising over the next twenty-one trading days

Ten Day: WPM 1.3%, vs. S&P500 -5.4%; Outperformed market

(45% likelihood event; 51% probability of rise over next 10 days)

  • WPM stock increased 1.3% over the last ten trading days (two weeks), compared to broader market (S&P500) drop of 5.4%
  • A change of 1.3% or more over ten trading days is a 45% likelihood event, which has occurred 1134 times out of 2516 in the last 10 years
  • Of these 1134 instances, the stock has seen a positive movement over the next ten trading days on 574 occasions
  • This points to a 51% probability for the stock rising over the next ten trading days

Five Day: WPM 6.2%, vs. S&P500 -3.8%; Outperformed market

(13% likelihood event; 56% probability of rise over next five days)

  • WPM stock increased 6.2% over a five-day trading period ending 01/19/2022, compared to the broader market (S&P500) drop of 3.8%
  • A change of 6.2% or more over five trading days (one week) is an event with 13% likelihood, which has occurred 328 times out of 2516 in the last ten years
  • Of these 328 instances, the stock has seen a positive movement over the next five trading days on 183 occasions
  • This points to a 56% probability for the stock rising over the next five trading days

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 WPM Return -2% -2% 119%
 S&P 500 Return -4% -4% 104%
 Trefis MS Portfolio Return -9% -9% 256%

[1] Month-to-date and year-to-date as of 1/20/2022
[2] Cumulative total returns since the end of 2016

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