Why Silver Wheaton Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, silver royalty holding company Silver Wheaton has earned a respected four-star ranking.

With that in mind, let's take a closer look at Silver Wheaton and see what CAPS investors are saying about the stock right now.

Silver Wheaton facts

Headquarters

Vancouver, Canada

Market Cap

$12.5 billion

Industry

Precious metals and minerals

Trailing-12-Month Revenue

$754.2 million

Management

Co-Founder/CEO Randy Smallwood

CFO Gary Brown

Return on Equity (average, past 3 years)

16.2%

Cash/Debt

$555.1 million / $57.2 million

Dividend Yield

0.8%

Competitors

Goldcorp

Pan American Silver

Hecla Mining


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 2,727 members who have rated Silver Wheaton believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, KenMcG6150, succinctly summed up the bull case for our community:

Silver Wheaton is what is known as a royalty streaming business. In short, they purchase long-term minerals from early stage mining companies who need cash on very attractive terms. ... This provides with the opportunity to acquire the metal without accepting any of the associated risks of operating a mine. I believe the inflationary monetary policies of our government, coupled with the inability or unwillingness of our politicians to address deficit spending in any significant way, will continue to result in a further devaluation of our paper currency and that this will result in a continued rise in the prices of gold, silver and platinum.

Of course, that short pitch doesn't even come close to telling the entire story for Silver Wheaton. You're in luck, though. The Motley Fool's brand-new premium report on Silver Wheaton looks at all sides of one of the most compelling resource plays in the market. You can grab your copy, which comes with free updates for 12 months.


Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Silver Wheaton Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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