Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of Glencore PLC (GLNCY) and Wheaton Precious Metals Corp. (WPM) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimat ...

Precious Metals Market Overview - Precious metals, particularly silver, have seen significant price increases due to geopolitical tensions and industrial demand, with the iShares Silver Trust rising 160% in the past year [1] - There is a multi-year shortage of silver, with demand consistently outpacing supply, a trend expected to continue into 2026 [1] Silver Mining Companies First Majestic Silver - First Majestic Silver is a traditional mining company operating in Mexico and the U.S., involved in all aspects from exploratory drilling to excavation [5] - The company acquired Gatos Silver, gaining a 70% interest in the high-grade Los Gatos mine, with 57% of its revenue derived from silver as of the third quarter last year [5] - First Majestic is a leveraged play on silver prices, benefiting from fixed operational costs, but faces risks if silver prices drop or mining costs rise [6] Wheaton Precious Metals - Wheaton Precious Metals operates under a streaming model, financing mining companies without owning physical mines [7] - The company provides upfront payments to mining firms in exchange for the right to purchase a percentage of the produced precious metals at a predetermined price [8] - In the third quarter, Wheaton's average cash cost of silver was $6.35 per ounce, offering cost predictability and protection against inflationary pressures [8]

Market Overview - U.S. equities started February on a subdued note, with investors becoming more selective regarding AI exposure, leading to a decline in stocks as the market adjusted high expectations and penalized companies perceived as potential AI "losers" [1] - Retail investors are advised to adopt a disciplined approach by reassessing allocations, tightening risk controls, and ensuring alignment with long-term goals [1] Stock Selection Criteria - Traditional stock selection based on sales growth is emphasized as a more reliable metric compared to earnings-focused metrics [2] - Sales growth is viewed as a clear indicator of a company's underlying momentum, reflecting actual demand for products and services, and can signal future profit potential [3] - Revenue trends should be analyzed in context, comparing growth with peers and industry norms to distinguish between sustainable strength and temporary boosts [4] Screening Parameters for Winning Stocks - Stocks are shortlisted based on a 5-Year Historical Sales Growth (%) greater than the industry average and a cash flow exceeding $500 million [5] - Additional criteria include a Price/Sales (P/S) Ratio lower than the industry average, indicating better value for each dollar of revenue [6] - Estimate revisions for future sales that exceed industry standards are also considered, as they can lead to stock price increases [6] - Operating Margin over the last five years should be greater than 5%, indicating effective cost control and sales growth outpacing costs [7] - Return on Equity (ROE) should be above 5%, ensuring that sales growth translates into profits and that the company is not hoarding cash [8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are preferred, as they are known to outperform in various market conditions [8] Recommended Stocks - Genuine Parts Company (GPC) is highlighted, with an expected sales growth rate of 3.7% for 2026 and a Zacks Rank of 2 [9][10] - Wheaton Precious Metals Corp. (WPM) is noted for its expected sales growth rate of 35.4% for 2026, also holding a Zacks Rank of 2 [9][11] - FirstEnergy Corporation (FE) is projected to have a sales increase of 3.6% in 2026, currently carrying a Zacks Rank of 2 [9][12]

Wheaton Precious Metals Corp. (NYSE:WPM) is included among the 11 Best Mining Stocks to Buy According to Wall Street. Wheaton Precious Metals Corp Announces that President Haytham Hodaly will take over as CEO Beginning March 31, 2026 On February 6, 2026, Wheaton Precious Metals Corp. (NYSE:WPM) announced a leadership transition as part of its succession plan. President Haytham Hodaly will take over as Chief Executive Officer, succeeding co-founder Randy Smallwood, who will step down after more than 15 ye ...

Group 1: AI and Gold Market Trends - There has been a significant increase in interest surrounding artificial intelligence (AI) stocks, with companies like Vertiv benefiting from this trend [1] - Gold prices have surged by 72.5% over the past year and 156% over the last five years, indicating a strong market for the precious metal [1] - Concerns about a potential tech bubble in AI, similar to the dotcom crash, may drive more investors towards gold as a safer asset [3] Group 2: Wheaton Precious Metals Overview - Wheaton Precious Metals operates as a streaming company, providing upfront payments to mines in exchange for future gold and silver production [5][7] - The company currently has contracts with 23 mines and is involved in 25 development projects globally, forecasting a 40% increase in production over the next two years [8] - Wheaton's financial performance has improved significantly, with net earnings of $913.4 million for the first nine months of 2025, more than double the $440.9 million from the same period in 2024 [9]

Group 1: AI and Gold Market Trends - There has been a significant increase in interest surrounding artificial intelligence (AI) stocks, with companies like Vertiv benefiting from this trend [1] - Gold prices have surged by 72.5% over the past year and 156% over the last five years, indicating a strong market for the precious metal [1] - Concerns about a potential tech bubble in AI, similar to the dotcom crash, may drive more investors towards gold as a safer asset [3] Group 2: Wheaton Precious Metals Overview - Wheaton Precious Metals operates as a streaming company, providing upfront payments to mines in exchange for future gold and silver production [5][7] - The company currently has contracts with 23 mines and is involved in 25 development projects globally, forecasting a 40% increase in production over the next two years [8] - Wheaton's net earnings for the first nine months of 2025 reached $913.4 million, more than double the $440.9 million generated during the same period in 2024, highlighting the benefits of the rising gold market [9]

Core Viewpoint - Despite volatility in silver prices, Wheaton Precious Metals has shown significant growth, with shares up 11.4% year-to-date and a remarkable 98% return over the past 12 months [1] Group 1: Company Performance - Wheaton Precious Metals has a current price-to-earnings (P/E) ratio of 59, which appears high compared to the S&P 500 average of 29.6, yet it may be undervalued due to its business model [2] - The company does not mine metals but finances mining projects in exchange for the right to purchase future output at discounted prices [3] - The market capitalization of Wheaton Precious Metals is $62 billion, with a gross margin of 68.52% and a dividend yield of 0.49% [3] Group 2: Business Model and Deals - A recent deal with Waterton Copper allows Wheaton to buy silver at an 82% discount to the spot price for $300 million in upfront financing [5] - The company also secured rights to purchase up to 18 million ounces of silver from the Blackwater mine at the same discount, for $141 million in financing [5] - This business model enables Wheaton to outperform precious metals returns over various time frames [6] Group 3: Valuation Metrics - The price-to-earnings-growth (PEG) ratio is a critical metric, currently below 1, indicating that the stock may be undervalued relative to its growth potential [8][11] - The PEG ratio dropped significantly in mid-2025 after the company reported a doubling of Q2 net income, making the stock appear cheaper despite its high P/E ratio [10]

Leadership Transition - Haytham Hodaly will succeed Randy Smallwood as CEO of Wheaton Precious Metals, effective March 31, 2026, as part of the company's strategic succession planning [1][2] - Randy Smallwood will transition to the role of non-executive Chair of the Board of Directors, ensuring leadership continuity [2][6] - George Brack will move from Chair of the Board to Lead Independent Director concurrently with Smallwood's transition [2] Executive Background - Haytham Hodaly has been with Wheaton since 2012, previously serving as Senior Vice President of Corporate Development and promoted to President in 2025 [4] - Hodaly has executed over $11 billion in streaming transactions, contributing significantly to the company's growth [4] - He possesses a strong background in mining engineering and capital markets, enhancing his leadership capabilities [4] Company Vision and Strategy - Hodaly expressed confidence in the company's future and emphasized a clear vision for growth in the precious metals market [5] - The leadership transition is seen as a significant milestone in Wheaton's long-term strategy to support the next generation of leadership [6] - The company aims to deliver sustainable value for stakeholders while maintaining its leadership in the streaming industry [5][6] Historical Context - Randy Smallwood co-founded Wheaton in 2004 and has been instrumental in its growth, leading it to become one of the largest precious metals companies globally [6] - Under Smallwood's leadership, Wheaton has focused on high-quality assets, disciplined capital allocation, and innovation, delivering consistent shareholder value [6] - Smallwood has also championed sustainable practices, including the launch of Wheaton's Community Investment Program [6] Board Support - The Board of Directors has expressed strong support for the leadership evolution and has confidence in Hodaly's capabilities [8] - Smallwood's ongoing role as Chair of the Board is expected to provide strategic insight and industry expertise [7][8] Company Overview - Wheaton Precious Metals is recognized as the world's premier precious metals streaming company, with a focus on long-life, low-cost assets [9] - The company's business model offers investors commodity price leverage with a lower risk profile compared to traditional mining companies [9] - Wheaton is committed to strong ESG practices and creating sustainable value for all stakeholders [9]

Core Insights - The company Wheaton Precious Metals has significantly outperformed gold, achieving a 4,153% return since going public in 2005, compared to gold's 1,012% increase during the same period [1] - The company's business model involves providing upfront financing to mining projects in exchange for the right to purchase a portion of the mine's future output at discounted prices, which mitigates risks associated with traditional mining operations [4][6] Financial Performance - Wheaton Precious Metals generated $35 million in gross profit per full-time employee last quarter, with only 44 full-time employees [2] - The company has a market capitalization of $60 billion and pays a dividend yield of 0.43%, which is uncommon in precious metal investments [2][4] Business Model - The company operates under a streaming model, allowing it to secure gold at an 80% discount to the spot price, enhancing profitability [4][6] - A recent deal with Hemlo Mining involved a $300 million financing agreement for the right to purchase 10.13% of gold output at a significantly reduced price [5] Profitability Analysis - With current gold prices at $4,893 per ounce, Wheaton Precious Metals can purchase the first 136,000 ounces for $133 million, which would have a market value of $665.5 million, resulting in a profit of $232.5 million after accounting for the initial financing [7]

Group 1: Silver Market Overview - Silver prices surged from approximately $70 per ounce at the beginning of the year to over $110 per ounce at its peak, driven by inflation concerns and government policy [1] - Following the appointment of Kevin Warsh as the next Fed Chair, who is perceived as less supportive of lower interest rates, silver prices have declined to the low-$80s, although this remains significantly higher than the low-$30s from a year ago [1] Group 2: Investment Opportunities in Silver Mining - Higher silver prices benefit silver mining stocks, with Wheaton Precious Metals (NYSE: WPM) highlighted for its low-cost structure and ability to capitalize on silver prices [2] - Investing in mining companies can potentially yield higher returns than the price increase of silver itself, as these companies may enhance production and profitability at a rate exceeding the metal's price rise [3] Group 3: Wheaton Precious Metals Business Model - Wheaton Precious Metals employs a unique and lower-risk business model by providing capital to mining companies through streaming agreements, allowing it to secure a percentage of a mine's production at a fixed cost [4] - An example includes Wheaton's $485 million upfront payment to support the Peñasquito mine, enabling the company to purchase a quarter of its silver output at a starting price of $4.56 per ounce, adjusted annually for inflation [4] Group 4: Production Expectations - Wheaton Precious Metals operates 23 mines and projected its streams to produce between 20.5 to 22.5 million ounces of silver, 350,000 to 390,000 ounces of gold, and 12,500 to 13,500 ounces of other metals in the previous year [5] - The company anticipated that approximately 39% of its revenue would come from silver streams, with 59% from gold, and 1% each from cobalt and palladium [5]