In the midst of the ongoing artificial intelligence gold rush, Wall Street's demand for the likes of Nvidia and Palantir Technologies remains abundantly clear. But investor demand does not end there. As Nvidia and Palantir earn a spot on Investor's Business Daily's Leaderboard, Wheaton Precious Metals has also streamed onto the list.
Now as shares of Nvidia and Palantir trade right around their all-time highs, Wheaton Precious Metals has just launched a breakout to a record high of its own.
Wheaton Precious Metals In Gem Of A Group
Headquartered in Vancouver, British Columbia, Wheaton is a precious metals streaming company. It provides up-front financing to mining companies in exchange for the right to purchase a percentage of the mine's future precious metal production.
Sporting a 98 Composite Rating out of a best-possible 99, WPM stock hails from the Mining-Gold/Silver/Gems industry group. Fellow highly rated gold and precious metals stocks include Agnico-Eagle Mines and AngloGold Ashanti, among others.
The mining group ranks a stellar No. 4 among the 197 industries IBD tracks. That clearly tops the rankings for Nvidia's fabless semiconductors group, at No. 41, and Palantir's enterprise software group, at No. 78.
Nvidia Drives AI Stampede With Broadcom, Palantir – And More – In Tow
Strong Growth — With More To Follow
In the first quarter, Wheaton Precious Metals generated 58% sales growth to $470.4 million. Earnings rose 54% to 55 cents per share. When the company reports second-quarter results on Aug. 7, analysts forecast 51% revenue growth to $451.5 million and 74% earnings growth to 57 cents per share.
For the full year, Wall Street expect a 61% rise in earnings to $2.35 per share.
While Wheaton Precious Metals stock did not join peers Agnico-Eagle Mines, AngloGold Ashanti and two others on the latest list of new buys by top funds, it has seen seven quarters of rising fund ownership. And an impressive 84 funds with an A+ rating from IBD have a position in Wheaton stock.
Digging Up A Fresh Breakout
Wheaton Precious Metals has formed a classic base-on-base pattern. On Tuesday, the stock popped past a 95.23 buy point, rising over 4% in heavy trade and ending the session in buy range. It is considered a base-on-base pattern because soon after clearing a flat base on June 2, the stock eased back to form a new flat base. Such moves can act as building blocks to an extended climb.
While forming the new base-on-base pattern, Wheaton Precious Metals stock has consistently held support at its 50-day moving average. On Monday Wheaton bounced back above its 21-day exponential moving average and continued to climb on Tuesday.
Meanwhile, fellow IBD Leaderboard stocks Nvidia and Palantir remain near their record highs, although both stocks are down on Tuesday.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
