Teck Resources Limited (NYSE:TECK): An Overrated Stock Poised to Climb

In the recent trading session, Teck Resources Limited (NYSE:TECK) shares lost -0.19% or -0.03 points to close at $15.81 with a heavy trading volume of 3.479 million shares. It opened the trading session at $15.9, the shares rose to $15.91 and dropped to $15.77, the range by which the price of stock traded the whole session. The company now has a market cap of $8.82 billion and currently has 556.7 million outstanding shares. Teck Resources Limited (TECK) stock has accumulated 0.64 percent of market value in 21 trading days.

TECK stock’s trailing 3-year beta is 1.44, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.23 share in the trailing 52 weeks. The stock’s value fallen -8.81 percent year to date (YTD) compared to a decline of -30.53 percent in 52 week’s period. The firm’s shares are still trading -38.59 percent below its 1-year high of $25.75 and 8.95 percent up from 52-week low of $14.51. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Teck Resources Limited (TECK) is most likely going to rise 103.16 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $34.41 as 12-month high price target. This represents a whopping 117.65 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $23.75, which means a return possibility of 50.22 percent in comparison with the closing price of the stock of $15.81 in recent trading session. The lowest price set for the stock is $16.09 which is just above 1.77 percent from TECK share’s price at the end of session.

Past records have indicated that shares in Teck Resources Limited declined on 10 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of TECK’s Q4 earnings on February 12. Analysts are predicting revenue to climb 11.4 percent to $2.54B in the financial fourth quarter, while EPS will soar by about 19.78 percent to $1.09 per share. In the last quarter, it’s earnings of $0.55079559363525 per share came worse than the $0.713622093850914, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $2.45B, missing the $2.5B analysts had expected. Earnings are seen to rise by 22.2 percent this year, -13.93 percent in the coming year and the trend continues by -9.51 percent every year in the next 5 years.

The stock is lingering around the initial support level of $15.55. After this, the following support is at the zone of $15.25. Up until the time the TECK stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 37.54 on the daily chart, and this may be a cause for comfort. In case the price goes below $15.25 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $16.05 level may cause a pull-back move approaching $16.25 mark.

Teck Resources Limited has a 31.1% gross profit margin, with its operating margin around 22.6%. Alongside this, the company’s net profit margin currently stands at 13.3%.