Should You Sell Wheaton Precious Metals Stock After the Recent Share Price Increase?

After a stellar year of growth, Wheaton Precious Metals (TSX: WPM) is now trading near all-time highs, leaving investors with a pressing question: Should you take profits or hold on for more upside? The Canadian stock surged more than 50% over the past year, outperforming not only its peers in the precious metals sector but also broader equity benchmarks like the TSX.

This performance isn’t just driven by gold’s recent climb above US$2,600 per ounce; it’s the culmination of strong operational execution, a wave of project milestones, and financial results that speak to the strength of Wheaton’s unique streaming model. So, let’s get into it.

Into earnings

In its recently reported second quarter, Wheaton delivered record revenue of US$503 million and adjusted net earnings of US$286 million. These were both up significantly year over year. The Canadian stock also posted US$415 million in operating cash flow, a 77% increase. All while maintaining a rock-solid balance sheet with US$1 billion in cash and zero debt.

With a streaming portfolio anchored by long-life, low-cost assets, Wheaton leveraged rising commodity prices far more efficiently than most traditional miners. Fixed per-ounce production payments helped drive cash operating margins up 37% year over year to US$2,717, even as gold production costs ticked slightly higher.

More to come

Beyond just the numbers, Wheaton’s operational narrative is evolving rapidly. Key catalysts came online in the second quarter, including the Blackwater and Goose projects. These both began delivering their first ounces of gold.

The developments helped drive production up 9.5% year over year and should support continued output growth in the second half of 2025. That’s especially important as Wheaton reiterates its full-year guidance of 600,000 to 670,000 gold equivalent ounces (GEOs), with expectations of reaching 870,000 GEOs by 2029.

Looking ahead

Yet despite all of this strength, the question remains whether now is the right time to sell. With a trailing price-to-earnings (P/E) ratio over 50 and a forward P/E of nearly 38, WPM isn’t cheap by conventional metrics. The market is pricing in a lot of optimism — not just on gold and silver prices, but also on Wheaton’s ability to continue securing accretive streaming deals while keeping costs low. Any deterioration in commodity prices, project delays, or disruptions at key mines could weigh heavily on the stock’s lofty valuation.

Still, Wheaton has done well to de-risk its growth profile. Nearly all of its production comes from assets in the lowest half of their cost curves, and a full 85% of its Q2 revenue came from streaming agreements with fixed payments. These offer downside protection if commodity prices slide. Moreover, with its extended US$2 billion revolving credit facility and cash-generating power, Wheaton is well-positioned to act opportunistically should the right deal come along.

Bottom line

So, should you sell Wheaton stock now? If you bought in before the rally and are sitting on sizeable gains, taking some profits off the table wouldn’t be unreasonable. Especially given the elevated valuation. But for investors with a longer time horizon, Wheaton still offers one of the most attractive combinations of cash flow strength, operational growth, and risk-adjusted upside in the sector, including a dividend that would bring in a nice little $50 payment once a year from a $7,000 investment.

With gold prices potentially remaining firm in a world of fiscal and geopolitical uncertainty, Wheaton may have more room to run. This isn’t just a gold bull story. It’s a case of smart execution and even smarter positioning.