4-Star Stocks Poised to Pop: Silver Wheaton

1 Recommendation

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, miner Silver Wheaton (NYSE: SLW) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Silver Wheaton facts

Headquarters (Founded)

Vancouver, Canada (1994)

Market Cap

$2.08 billion

Industry

Silver

TTM Revenue

$188.46 million

Management

CEO Peter Barnes (since April 2006)

CFO Gary Brown (since July 2008)

TTM Return on Equity

12.3%

Competitors

Goldcorp (NYSE: GG),

Pan American Silver (Nasdaq: PAAS)

CAPS members bullish on SLW also bullish on

Yamana Gold (NYSE: AUY),

Vale (NYSE: RIO)

CAPS members bearish on SLW also bearish on

Kinross Gold (NYSE: KGC),

Agnico-Eagle Mines (NYSE: AEM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 217 of the 229 All-Star members who have rated Silver Wheaton -- or 95% -- believe the stock will outperform the S&P 500. These All-Star bulls include DemonDoug and carbonates, who are ranked in the top 5% of our community.

Last month, DemonDoug noted that Silver Wheaton is "one of the best and most profitable silver companies, I've been tracking this stock for 18 months, now down on a 'stronger dollar' ... [Silver Wheaton] can potentially double especially if silver gets closer to it's intrinsic value around $25/oz."

In a pitch from March, carbonates shares that silvery sentiment, highlighting the company's well-positioned business model:

This is an easy pick if you have followed metals prices and the dollar's value over the past five years. ... [Silver Wheaton] is a pure silver play, which is a metal that both has significant industrial consumption and is held as a value reserve. Because mining silver is a much different business than marketing silver, [Silver Wheaton] is in a unique position to sell fixed price contracted purchases of silver from mines at spot prices that are likely to continue to rise.

What do you think about Silver Wheaton, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

Silver Wheaton Corp. (USA)

SLW Up! $2.81 +0.24 (+9.34%) 4:04 PM
CAPS Rating:
1228 Outperforms
36 Underperforms
Rate This Stock

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