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Wheaton Precious Metals Corp. (WPM) Soars 6.9%: Is Further Upside Left in the Stock?

Wheaton Precious Metals Corp. (WPM) shares soared 6.9% in the last trading session to close at $43.27. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.1% loss over the past four weeks.

Wheaton Precious Metals has gained on the back of recent surge in gold and silver prices, which has been triggered by the fall in the value of the U.S. dollar after the sudden collapse of Silicon Valley Bank. Gold is currently above $1,900 per ounce, gaining on speculation that the banking crisis will lead the Federal Reserve to take a less aggressive approach to policy tightening. Silver futures are currently above the $21 per ounce mark, recovering from the four-month low of $20 on Mar 8, 2023.

This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -20%. Revenues are expected to be $269.15 million, down 12.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Wheaton Precious Metals Corp., the consensus EPS estimate for the quarter has been revised 7.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WPM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Wheaton Precious Metals Corp. belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Materion (MTRN), closed the last trading session 1% lower at $105.99. Over the past month, MTRN has returned 24.7%.

Materion's consensus EPS estimate for the upcoming report has changed +26.8% over the past month to $1.29. Compared to the company's year-ago EPS, this represents a change of +7.5%. Materion currently boasts a Zacks Rank of #3 (Hold).

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