A strong stock as of late has been Teck Resources Ltd (TECK). Shares have been marching higher, with the stock up 8.8% over the past month. The stock hit a new 52-week high of $72.56 in the previous session. Teck Resources has gained 50.3% since the start of the year compared to the 20.5% gain for the Zacks Basic Materials sector and the 31.1% return for the Zacks Mining – Miscellaneous industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 23, 2026, Teck Resources reported EPS of $1.39 versus consensus estimate of $0.78.

For the current fiscal year, Teck Resources is expected to post earnings of $3.6 per share on $10.44 in revenues. This represents a 62.9% change in EPS on a 35.38% change in revenues. For the next fiscal year, the company is expected to earn $3.03 per share on $10.22 in revenues. This represents a year-over-year change of -15.82% and -2.05%, respectively.

Valuation Metrics

While Teck Resources has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Teck Resources has a Value Score of C. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 20X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.3X. On a trailing cash flow basis, the stock currently trades at 14.7X versus its peer group's average of 17.9X. Additionally, the stock has a PEG ratio of 2.5. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Teck Resources currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Teck Resources meets the list of requirements. Thus, it seems as though Teck Resources shares could still be poised for more gains ahead.

How Does TECK Stack Up to the Competition?

Shares of TECK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Norsk Hydro ASA (NHYDY). NHYDY has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.

Earnings were strong last quarter. Norsk Hydro ASA beat our consensus estimate by 4.55%, and for the current fiscal year, NHYDY is expected to post earnings of $0.92 per share on revenue of $22.86 billion.

Shares of Norsk Hydro ASA have gained 4.5% over the past month, and currently trade at a forward P/E of 11.13X and a P/CF of 9.23X.

The Mining – Miscellaneous industry may rank in the bottom 74% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for TECK and NHYDY, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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