Wheaton Precious Metals Stock Outperforms Peers with 60% Gain
Wheaton Precious Metals Stock (NYSE:WPM) has experienced an impressive rise of over 60% in the past year, significantly outperforming the S&P 500 index, which saw a mere 9% increase. In comparison to its peers, Wheaton’s growth eclipses Barrick Gold Stock (NYSE: GOLD) at 19% and Newmont Corporation (NYSE: NEM) at 34% during the same timeframe.
The substantial rise in Wheaton’s Stock is largely attributed to rising precious metals prices. In 2024, prices for gold and silver increased due to easing inflation, ongoing geopolitical tensions—including the Russia-Ukraine conflict—and uncertainty around U.S. Federal Reserve policies. Additionally, Wheaton has enhanced its production capabilities through new streaming agreements, notably with the Fenix and Kone projects. Stronger-than-expected gold grades from existing operations also contributed to its growth. Reflecting this robust performance, Wheaton has raised its quarterly dividend for 2025, indicating confidence in long-term profitability. For investors seeking stable returns, the High Quality portfolio has outperformed the S&P 500, yielding over 91% since its inception.
Image by Steve Bidmead from Pixabay
Key Factors Behind Wheaton’s Stock Performance
The increase in Wheaton’s stock price is further justified by a robust 26% rise in revenue for 2024, totaling $1.3 billion, alongside the maintenance of high gross profit margins. The company also recorded operating cash flows of $1.028 billion for the quarter, setting a record.
While Wheaton’s revenue surged in 2024, its price-to-sales (P/S) multiple has climbed from 22x in 2023 to 28x at present. This increase reflects the company’s strong stock performance over the past year, which is likely fueled by higher metal prices, rising revenue, and improved market sentiment toward precious metals streaming firms.
Over a four-year period, the performance of WPM Stock has shown inconsistency, but it has remained less volatile compared to the S&P 500. Annual returns are recorded at 4% in 2021, -8% in 2022, 28% in 2023, and 15% in 2024. The Trefis High Quality (HQ) Portfolio, consisting of 30 carefully selected stocks, has shown less volatility and has outperformed the S&P 500 over the past four years.
Potential Challenges and Future Outlook
Looking ahead, the HQ Portfolio has demonstrated superior returns with lower risk compared to the benchmark index. Given the current uncertain macroeconomic landscape, characterized by potential rate cuts and various global conflicts, there is a possibility that WPM could face performance challenges akin to those seen in 2021 and 2024—leading to underperformance against the S&P 500 over the next year. Conversely, WPM could experience significant growth.
Forecast for Wheaton’s Stock
Wheaton Precious Metals (WPM) reported strong results for Q4 2024, achieving record revenue and notable earnings growth. The company generated $381 million in revenues for Q4 2024, representing significant year-over-year growth. The adjusted EPS was $0.44. Looking toward the future, Wheaton anticipates a 40% increase in annual production, aiming for 870,000 gold equivalent ounces (GEOs) by 2029. In 2025, production is projected to range between 600,000 to 670,000 GEOs. Overall, a combination of strategic growth initiatives, favorable market conditions, and strong operational performance has driven WPM’s stock surge in the past year. We estimate WPM’s valuation at $77 per share, aligning with the current market price.
| Returns | Mar 2025 MTD [1] |
2025 YTD [1] |
2017-25 Total [2] |
| WPM Return | 9% | 34% | 337% |
| S&P 500 Return | -4% | -3% | 155% |
| Trefis Reinforced Value Portfolio | -3% | -4% | 587% |
[1] Returns as of 3/27/2025
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
