Wheaton Precious Metals Corp. (WPM) Down 4.5% — Should I Harvest This Position?
Key Points
Wheaton Precious Metals Corp. (WPM) finished the latest session under clear pressure, sliding 4.52% to close at $119.84. The stock retreated $5.67 from the prior close of $125.51, giving back a meaningful portion of its recent gains and losing ground after its strong run. Trading activity was subdued, with roughly 394,000 shares changing hands on the NYSE, well below the 90-day average volume of about 2.14 million shares. This lighter-than-usual participation suggests the latest pullback unfolded in a relatively thin tape, yet the price still moved sharply lower, underscoring the current headwinds in the name.
From a longer-term perspective, WPM is now backing away from its recent 52-week peak of $126.18 set on Jan. 6, 2026, leaving the stock roughly 5% below that high-water mark. The retreat from fresh highs puts the shares in a consolidating pattern after what had been a strong advance. Within the precious metals space, the stock’s single-day pullback appears steeper than the more moderate moves typically seen in peers such as Southern Copper Corporation (SCCO), Newmont Corporation (NEM), and Agnico Eagle Mines Limited (AEM), suggesting WPM may be under relatively greater short-term pressure. For investors tracking price momentum, this latest session marks a notable step back, with the shares losing altitude near their recent peak and signaling that upside traction is weakening, at least in the near term.
Why Wheaton Precious Metals Corp. Price is Moving Lower
The recent pullback in Wheaton Precious Metals Corp. comes on the heels of a sharp run-up to fresh 52-week highs, leaving the shares vulnerable to profit-taking and valuation fatigue. The stock surged to C$173.16 intraday on the TSX after upbeat analyst commentary and strong quarterly results, but that enthusiasm has pushed the price well ahead of the average analyst target of about C$134.43. Even with select upgrades, such as Canaccord Genuity’s move to C$172 and Royal Bank of Canada’s higher target, the broader target landscape still sits below or only roughly in line with recent trading levels. That gap signals growing concern that expectations have overshot fundamentals in the near term, encouraging short-term holders to lock in gains.
At the same time, the very strength of Wheaton’s fundamentals is contributing to a more cautious stance. Revenue growth of 54.5% and a profit margin above 54% underscore robust profitability, but they also raise questions about how much of that momentum is already reflected in the current market capitalization of roughly $57 billion. A relatively modest dividend of $0.66 annualized and a yield near 0.4% offers limited income support if sentiment turns, especially compared with other large precious metals names such as Southern Copper, Newmont, and Agnico Eagle. With trading volume on the NYSE recently running below its 90‑day average, incremental buyers appear more restrained at elevated levels, suggesting that even strong operating performance may not be enough to offset mounting concerns over valuation risk and downside if precious metals prices or broader Materials sector conditions soften.
What is the Wheaton Precious Metals Corp. Rating - Should I Sell?
Weiss Ratings assigns WPM a B rating. Current recommendation is Buy. Even with this above-average overall assessment, investors should approach Wheaton Precious Metals Corp. with caution. The stock’s premium valuation — with a forward P/E ratio near 57 — prices in a great deal of optimism, leaving little margin for error if growth slows or metal prices retreat.
The B rating is heavily supported by the Excellent Growth Index, with revenue advancing 54.50%, and the Excellent Efficiency Index, which aligns with a solid 54.72% profit margin and 13.05% return on equity. The Excellent Solvency Index and Good Volatility Index further point to a business that has, so far, managed its balance sheet and price swings relatively well. However, these strengths have come at a cost to income-oriented investors. The Weak Dividend Index signals that shareholders looking for reliable cash returns may be disappointed, especially given the stock’s already rich valuation.
The Good Total Return Index shows that past shareholders have been rewarded, but this backward-looking strength does not guarantee future protection if sector sentiment turns. Within the materials sector, peers such as Southern Copper Corporation (SCCO, B), Newmont Corporation (NEM, B), and Agnico Eagle Mines Limited (AEM, B) share the same Buy-level rating, giving investors alternatives that may offer more balanced income, valuation or diversification profiles.
Overall, while WPM’s B rating indicates a favorable risk/reward profile today, the combination of a high earnings multiple, Weak Dividend Index and dependence on favorable commodity conditions should keep more conservative investors on alert.
About Wheaton Precious Metals Corp.
Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company operating within the Materials sector, with a primary focus on gold, silver and, to a lesser extent, palladium and cobalt. Instead of owning and operating mines, the company enters into long-term streaming agreements with mining operators, providing upfront capital in exchange for the right to purchase a portion of future metal production at a fixed, typically discounted, price. This model leaves Wheaton dependent on counterparties’ operating performance, project timelines and cost controls, while concentrating its exposure in a relatively narrow group of underlying assets and commodities.
The company’s portfolio is diversified across multiple mines and counterparties, but its business remains closely tied to the operational, environmental and geopolitical risks faced by those mines. Any production shortfalls, project delays, regulatory disruptions or cost blowouts at partner operations can directly reduce the volume of gold and silver Wheaton is entitled to receive. The streaming structure also limits the company’s direct control over mine-level decisions, leaving it reliant on third-party management teams to maintain production quality and continuity.
Wheaton positions itself as a lower-operating-cost participant in the precious metals value chain, but its fortunes are still heavily influenced by volatile precious metal markets and long-dated contractual commitments. The company’s strategy of securing new streams and expanding existing agreements requires continuous access to attractive projects and cooperative mining partners, in a competitive environment where other royalty and streaming firms pursue similar deals. This dependence on counterparties, commodity prices and contract terms defines the core risk profile of Wheaton Precious Metals’ business model.
Investor Outlook
Despite its B (Buy) Weiss Rating, investors may want to exercise caution with Wheaton Precious Metals Corp. (WPM), closely watching how Materials sector sentiment and precious metals prices influence its risk/reward profile. Any deterioration in underlying fundamentals or relative underperformance versus other B-rated peers could pressure the rating and increase downside risk. See full rankings of all B-rated Materials stocks inside the Weiss Stock Screener.
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