How the drop in gold and silver prices affected Wheaton’s precious metals stocks
Wheaton precious metal stock (NYSE: WPM) is down 13% last month and is now trading below $ 40. The decline in the stock was driven by the decline in gold and silver prices. The global price of gold has fallen more than 4%, while the price of silver has fallen over 6% in the last month. A stronger dollar has caused precious metals prices to decline. With the bulk of WPM’s revenue coming from gold and silver, the stock has fallen over the past few weeks. But will WPM stock continue its downtrend in the coming weeks, or is a rebound in the stock more likely?
According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the past decade, the returns on WPM stocks are probably almost 8% in the next three months (63 trading days) after a decrease of 13% over the previous period of one month (21 trading days). There is also a 60% chance the stock will generate positive returns over the next three months. But how would those numbers change if you were interested in holding WPM stock for a shorter or longer period of time? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test them WPM share price forecast after a rise or fall. You can test the chance of recovery over different time intervals of a quarter, a month or even just a day! More details on Wheaton Precious Metals’ business can be found here WPM sales is produced.
MACHINE LEARNING ENGINE – try it yourself:
IF The WPM share moved -5% over five trading days, THEN Over the next 21 trading days, the WPM share will move an average of 2.7%, with a 55% probability of a positive return.
Some fun scenarios, frequently asked questions, and the importance of WPM stock movements:
Question 1: After falling, is the Wheaton Precious Metals Corp (Canada) stock price forecast higher?
Consider two situations
Case 1: Wheaton Precious Metals Corp (Canada) stock falls -5% or more in one week
Case 2: Wheaton Precious Metals Corp (Canada) stock rises 5% or more in a week
Is the forecast for Wheaton Precious Metals Corp (Canada) stock higher in the month following Case 1 or Case 2?
WPM share performs better after case 2, with an expected return of 2.7% over the next month (21 trading days) under Case 1 (where the stock just suffered a 5% loss in the previous week), versus an expected return of 2.9% for case 2. This implies a price prediction of $ 40 in case 1 and a figure of $ 40 in case 2 using the WPM market price of $ 38.73 on 9/28/2021.
In comparison, the S&P 500 has an expected return of 3.1% over the next 21 trading days in Case 1 and an expected return of only 0.5% for Case 2, as described in our dashboard, which the expected return for the S&P 500 after an increase or decrease.
Try the Trefis machine learning engine above to see for yourself how the forecast for Wheaton Precious Metals Corp (Canada) stock is likely to change after a given profit or loss over a period of time.
Question 2: Is patience worth it?
When you buy and hold Wheaton Precious Metals Corp stock, it is expected that the short-term fluctuations will offset over time and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, after the data and calculations of the Trefis Machine Learning Engine, patience pays off for most stocks!
For WPM shares, the returns for the next N days after a change of -5% in the last five trading days is listed in the table below along with the returns for the S & P500:
Question 3: What about the stock price prediction after a rise if you wait a while?
The expected return after an increase is understandably lower than after a decrease, as described in the previous question. Interestingly, however, if a stock has risen in the past few days, avoid short-term bets on most stocks – although WPM stock appears to be an exception to this general observation.
The returns on WPM for the next N days after a change of 5% in the last five trading days is listed in the table below along with the returns for the S & P500:
It is pretty powerful to test the trend for Wheaton Precious Metals Corp stock for yourself by changing the inputs on the charts above.
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