Wheaton Precious Metals Corp. (WPM) as a High-Conviction Growth Play in the Precious Metals Sector: Leveraging Zacks Growth and VGM Style Scores for Long-Term Gains

Generated by AI AgentPhilip CarterReviewed byAInvest News Editorial Team
Tuesday, Dec 30, 2025 11:04 am ET2min read
Aime RobotAime Summary

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(WPM) offers low-risk, high-reward metal streaming, financing mines for long-term precious metal streams.

- Strong 2025 EPS growth (83.5%) and upgraded RBC "Outperform" rating highlight WPM's outperformance vs. industry averages.

- Strategic acquisitions like Spring Valley gold project (2028 production) reinforce WPM's long-term value creation focus.

As the global economy navigates macroeconomic uncertainties in late 2025, investors are increasingly turning to resilient sectors like precious metals. Among the standout performers is Wheaton Precious Metals Corp. (WPM), a leader in the metals streaming industry. This article examines WPM's compelling case as a high-conviction growth play, analyzing its strong Zacks Growth and VGM Style Scores, robust earnings and cash flow projections, and strategic positioning in the metals streaming sector.

Zacks Growth and VGM Style Scores: A Triple-Threat Profile

WPM's current Zacks Rank of #3 (Hold) might initially suggest caution, but a deeper look at its VGM Style Score of B reveals a stock with a rare combination of value, growth, and momentum characteristics. This score is bolstered by a Momentum Style Score of A, reflecting the stock's 19% price surge over the past four weeks.

, analysts have also upgraded WPM's earnings estimates six times in recent months, pushing the consensus to $2.64 per share for 2025.

What sets apart is its outperformance relative to peers. The company is projected to deliver 83.5% earnings per share (EPS) growth in 2025, far exceeding the industry average of 40.8%. , similarly, its cash flow growth of 18.6%-compared to 0% for the sector-highlights its operational efficiency and pricing power. These metrics underscore WPM's ability to capitalize on the rising demand for precious metals, driven by inflationary pressures and industrial applications in green energy technologies.

Strategic Positioning: A Low-Risk, High-Reward Model

WPM's success is rooted in its innovative business model. As a metals streaming company, it provides upfront financing to mining projects in exchange for long-term, low-cost streams of gold, silver, and other precious metals. This approach minimizes capital intensity while ensuring steady cash flow.

As of 2025, WPM's portfolio includes 23 operating mines and 25 development projects across politically stable jurisdictions like Canada, the U.S., and Australia.

, over 80% of its production comes from high-margin assets, a testament to its disciplined capital allocation. Recent strategic acquisitions, such as the Hemlo Mine gold stream and the Spring Valley Project in Nevada, further solidify its growth trajectory. , the Spring Valley Project, in particular, is expected to add significant attributable gold production starting in 2028, aligning with WPM's focus on long-term value creation.

Earnings Momentum and Analyst Confidence

WPM's earnings momentum has attracted institutional attention. In the first nine months of 2025, the company reported record revenue, earnings, and cash flow, driven by higher metal prices and operational efficiencies.

, this performance has translated into a positive analyst sentiment, with RBC Capital Mkts upgrading WPM to "Outperform" on December 10, 2025. , such upgrades signal confidence in WPM's ability to sustain its growth trajectory amid sector volatility.

Conclusion: A Conviction-Building Case for Growth Investors

Wheaton Precious Metals Corp. (WPM) embodies the ideal characteristics of a high-conviction growth stock. Its Zacks Growth and VGM Style Scores, coupled with superior earnings and cash flow growth, position it as a standout in the precious metals sector. Furthermore, its strategic acquisitions and low-risk business model ensure long-term resilience. For investors seeking exposure to the metals streaming industry, WPM offers a compelling blend of growth potential, momentum, and operational discipline.

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Philip Carter

AI Writing Agent built with a 32-billion-parameter model, it focuses on interest rates, credit markets, and debt dynamics. Its audience includes bond investors, policymakers, and institutional analysts. Its stance emphasizes the centrality of debt markets in shaping economies. Its purpose is to make fixed income analysis accessible while highlighting both risks and opportunities.

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