On April 3, highly rated Canadian miner Wheaton Precious Metals rose above a buy point in strong trading volume. It continued climbing amid a resurgent gold market. On Thursday Wheaton stock's Relative Strength (RS) Rating popped into a higher percentile, with a rise from 73 to 81, passing a ,milestone.
The upgraded 81 RS Rating shows that Wheaton stock is in the top 19% of stocks for price performance this past year. It's a notable upgrade because market research reveals that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating in the early stages of their moves.
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Wheaton Stock's Other Ratings Also Golden
Among its other ratings Wheaton stock has a terrific 96 Composite Rating out of 99. Its Earnings Per Share Rating is also a lofty 96. Reflecting strong fundamentals, its SMR Rating (sales + profit margins + return on equity) is B on an A-to-E scale. Its Accumulation/Distribution Rating, a gauge of institutional investor buying, is B+.
It really doesn't have any negative ratings, making it a good watchlist candidate. One thing to watch though is its recent stock action. After the IBD 50 stock climbed above a 50.95 buy point it's trading within the top part of a buy range. It hasn't taken off as rapidly as one would like, but it is slowly rising above the buy point.
Regarding fundamentals, the company has posted three quarters of rising earnings growth. Top line growth has also risen during the same period. Wheaton reported a 57% leap in earnings to 36 cents per share on a 33% increase in revenue to $313.5 million last quarter. Wheaton is expected to release its next quarterly numbers on or around May 9.
Others In Group Have Higher Ratings
Demonstrating the rising strength of the precious metals sector, Wheaton stock has good ratings, but it's down at the No. 9 rank among its peers in the Mining-Gold/Silver/Gems industry group. Agnico-Eagle Mines is No. 1 in the group. Eldorado Gold and Triple Flag Precious Metals are Nos. 2 and 3, respectively, among the top five highly rated stocks within the group.
IBD's proprietary Relative Strength Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks measures up against that of other stocks on the major indexes.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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