For Immediate Release
Chicago, IL – March 30, 2022 – Stocks in this week’s article are Celestica CLS, ASE Technology Holding ASX, Harley-Davidson HOG, Teck Resources Ltd. TECK and Hillenbrand HI.
Buy These 5 Low Price-to-Book-Value Stocks for Solid Returns
Value investors prefer price to earnings (P/E) and price to sales (P/S) ratios for identifying low-priced stocks with exceptional returns. However, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for the purpose. The ratio is used to compare a stock's market value/price to its book value.
The P/B ratio is calculated as below:
P/B ratio = market price per share/book value of equity per share
P/B ratio reflects how many times book value investors are ready to pay for a share. So, if the share price is $10 and book value of equity is $5, investors are ready to pay two times the book value. Ideally, a P/B value under 1.0 is considered good, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.
The P/B ratio helps to identify low-priced stocks that have high growth prospects. Celestica, ASE Technology Holding, Harley-Davidson, Teck Resources Ltd. and Hillenbrand are some such picks.
Now let us understand the concept of book value.
What's Book Value?
There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company's balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders' equity on the balance sheet. However, depending on the company's balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under-or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value, or the stock is undervalued and therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a caveat. A P/B ratio less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock's price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio isn't without limitations. It is useful for businesses — like finance, investments, insurance, and banking or manufacturing companies — with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S, and debt to equity before arriving at a reasonable investment decision.
Here are our five picks out of the 18 stocks that qualified the screening:
Celestica is one of the largest electronics manufacturing services companies in the world, serving the computer and communications sectors.
Celestica has a Zacks Rank #1 and a Value Score of A. Celestica has a projected 3-5 year EPS growth rate of 14.5%.
You can see the complete list of today's Zacks #1 Rank stocks here.
ASE Technology Holding is a provider of semiconductor manufacturing services in assembly and testing.
ASE Technology Holding has a projected 3-5 year EPS growth rate of 26.9%. ASE Technology Holding currently has a Zacks Rank #2 and a Value Score of A.
Teck Resources Limited is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy.
Teck Resources has a projected 3-5 year EPS growth rate of 38.7%. TECK currently has a Zacks Rank #2 and a Value Score of A.
Harley-Davidson is one of the leading motorcycle makers in the world. It is the parent entity of company groups doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services.
Harley-Davidson has a projected 3-5 year EPS growth rate of 46.4%. TECK currently has a Zacks Rank #1 and a Value Score of A.
Hillenbrand is a global diversified industrial company with multiple market-leading brands that serve a wide variety of industries across the globe. Hillenbrand's portfolio comprises two business segments: the Process Equipment Group and Batesville.
Hillenbrand has a projected 3-5 year EPS growth rate of 12%. Hillenbrand currently has a Zacks Rank #2 and a Value Score of A.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1888921/buy-these-5-low-price-to-book-value-stocks-for-solid-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HarleyDavidson, Inc. (HOG) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Hillenbrand Inc (HI) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
(Reuters) – BHP Group Ltd said on Tuesday it will invest more than $10 billion in Chile to fuel growth in the world's largest copper producing nation for the next 50 years, but only under certain regulatory and fiscal situations.
Chile, which supplies nearly a quarter of the world's copper, recently elected a new leftist government, is redrafting its constitution and considering raising its mining royalty to fund expanded social programs. Several copper miners have paused investment decisions in the country while the political negotiations play out.
"We love Chile. We would like to stay here. We would like to grow in this country. But in order to do that, it will require fiscal stability, legal certainty and a clear pathway to permit," Ragnar Udd, BHP's president of minerals, Americas, told the CRU-CESCO World Copper Conference in Santiago.
BHP already operates Chile's Escondida, the world's largest copper mine.
Udd spoke at the conference not long after Marcela Hernando Pérez, the new Chilean mining minister, who said that Santiago does not plan to nationalize the country's mining sector. Perez had left by the time Udd spoke.
Udd said that the investments from BHP would fund a new concentrator and leach processing facilities, new mining areas and projects to help reduce the company's carbon emissions.
"I hope that I've convinced you today that under the right investment conditions, we can deliver copper to support the world of the future in a way that is sustainable and create social value for the communities and societies in which we operate," Udd said.
(Reporting by Ernest Scheyder and Fabian Cambero; Editing by Marguerita Choy)
March 29 (Reuters) – BHP Group Ltd said on Tuesday it will invest more than $10 billion in Chile to fuel growth in the world's largest copper producing nation for the next 50 years, but only under certain regulatory and fiscal situations.
Chile, which supplies nearly a quarter of the world's copper, recently elected a new leftist government, is redrafting its constitution and considering raising its mining royalty to fund expanded social programs. Several copper miners have paused investment decisions in the country while the political negotiations play out.
"We love Chile. We would like to stay here. We would like to grow in this country. But in order to do that, it will require fiscal stability, legal certainty and a clear pathway to permit," Ragnar Udd, BHP's president of minerals, Americas, told the CRU-CESCO World Copper Conference in Santiago.
BHP already operates Chile's Escondida, the world's largest copper mine.
Udd spoke at the conference not long after Marcela Hernando Pérez, the new Chilean mining minister, who said that Santiago does not plan to nationalize the country's mining sector. Perez had left by the time Udd spoke.
Udd said that the investments from BHP would fund a new concentrator and leach processing facilities, new mining areas and projects to help reduce the company's carbon emissions.
"I hope that I've convinced you today that under the right investment conditions, we can deliver copper to support the world of the future in a way that is sustainable and create social value for the communities and societies in which we operate," Udd said. (Reporting by Ernest Scheyder and Fabian Cambero Editing by Marguerita Choy)
Value investors prefer price to earnings (P/E) and price to sales (P/S) ratios for identifying low-priced stocks with exceptional returns. However, the underrated price-to-book ratio (P/B ratio) is also an easy-to-use valuation tool for the purpose. The ratio is used to compare a stock’s market value/price to its book value.
The P/B ratio is calculated as below:
P/B ratio = market price per share/book value of equity per share
P/B ratio reflects how many times book value investors are ready to pay for a share. So, if the share price is $10 and book value of equity is $5, investors are ready to pay two times the book value. Ideally, a P/B value under 1.0 is considered good, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.
The P/B ratio helps to identify low-priced stocks that have high growth prospects. Celestica CLS, ASE Technology Holding ASX, Harley-Davidson HOG, Teck Resources Limited TECK and Hillenbrand HI are some such picks.
Now let us understand the concept of book value.
What’s Book Value?
There are several ways by which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it goes bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under-or overpriced. However, like P/E or P/S ratio, it is always better to compare P/B ratios within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value, or the stock is undervalued and therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a caveat. A P/B ratio less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated, in which case the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio isn't without limitations. It is useful for businesses — like finance, investments, insurance, and banking or manufacturing companies — with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S, and debt to equity before arriving at a reasonable investment decision.
Screening Parameters
Price to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.
Price to Sales less than X-Industry Median :The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.
Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.
PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued and investors need to pay less for a stock that has bright earnings growth prospects.
Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.
Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.
Here are our five picks out of the 18 stocks that qualified the screening:
Celestica is one of the largest electronics manufacturing services companies in the world, serving the computer and communications sectors.
Celestica has a Zacks Rank #1 and a Value Score of A. Celestica has a projected 3-5 year EPS growth rate of 14.5%.
You cansee the complete list of today’s Zacks #1 Rank stocks here.
ASE Technology Holding is a provider of semiconductor manufacturing services in assembly and testing.
ASE Technology Holding has a projected 3-5 year EPS growth rate of 26.9%. ASE Technology Holding currently has a Zacks Rank #2 and a Value Score of A.
Teck Resources Limited is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy.
Teck Resources has a projected 3-5 year EPS growth rate of 38.7%. TECK currently has a Zacks Rank #2 and a Value Score of A.
Harley-Davidson is one of the leading motorcycle makers in the world. It is the parent entity of company groups doing business as Harley-Davidson Motor Company and Harley-Davidson Financial Services.
Harley-Davidson has a projected 3-5 year EPS growth rate of 46.4%. TECK currently has a Zacks Rank #1 and a Value Score of A.
Hillenbrand is a global diversified industrial company with multiple market-leading brands that serve a wide variety of industries across the globe. Hillenbrand's portfolio comprises two business segments: the Process Equipment Group and Batesville.
Hillenbrand has a projected 3-5 year EPS growth rate of 12%. Hillenbrand currently has a Zacks Rank #2 and a Value Score of A.
Get the rest of the stocks on the list and startputting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HarleyDavidson, Inc. (HOG) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Hillenbrand Inc (HI) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, March 29th:
Target Hospitality TH: This company which operates as a specialty rental and hospitality services company in North America, has a Zacks Rank #1 (Strong Buy) and witnessed the seen Zacks Consensus Estimate for its current year earnings increasing 50% over the last 60 days.
Target Hospitality Corp. Price and ConsensusTarget Hospitality Corp. Price and Consensus
Target Hospitality Corp. price-consensus-chart | Target Hospitality Corp. Quote
Target Hospitality’s shares gained 64.6% over the last three months compared with the S&P 500’s decline of 4%. The company possesses a Momentum Score of A.
Target Hospitality Corp. PriceTarget Hospitality Corp. Price
Target Hospitality Corp. price | Target Hospitality Corp. Quote
Teck Resources TECK: This company which is engaged in exploration for, acquiring, developing, and producing natural resources in Asia, Europe, and North America, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.9% over the last 60 days.
Teck Resources Ltd Price and ConsensusTeck Resources Ltd Price and Consensus
Teck Resources Ltd price-consensus-chart | Teck Resources Ltd Quote
Teck Resources‘s shares gained 42.2% over the last three months compared with the S&P 500’s decline of 4%. The company possesses a Momentum Score of A.
Teck Resources Ltd PriceTeck Resources Ltd Price
Teck Resources Ltd price | Teck Resources Ltd Quote
W.R. Berkley WRB: This insurance holding company which operates as a commercial lines writer in the United States and internationally, has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
W.R. Berkley Corporation Price and ConsensusW.R. Berkley Corporation Price and Consensus
W.R. Berkley Corporation price-consensus-chart | W.R. Berkley Corporation Quote
W.R. Berkley’s shares gained 22.1% over the last three months compared with the S&P 500’s decline of 4%. The company possesses a Momentum Score of A
W.R. Berkley Corporation PriceW.R. Berkley Corporation Price
W.R. Berkley Corporation price | W.R. Berkley Corporation Quote
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Target Hospitality Corp. (TH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Centamin (CELTF) is a stock many investors are watching right now. CELTF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.23, which compares to its industry's average of 9.52. Over the past year, CELTF's Forward P/E has been as high as 12.82 and as low as 6.96, with a median of 9.17.
Investors should also recognize that CELTF has a P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.38. Over the past 12 months, CELTF's P/B has been as high as 1.56 and as low as 0.95, with a median of 1.18.
Investors could also keep in mind Teck Resources (TECK), an Mining – Miscellaneous stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of Teck Resources are currently trading at a forward earnings multiple of 6.43 and a PEG ratio of 0.17 compared to its industry's P/E and PEG ratios of 9.52 and 1.02, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centamin (CELTF) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 29th:
Teck Resources TECK: This company which is engaged in exploration for, acquiring, developing, and producing natural resources in Asia, Europe, and North America, carries a Zacks Rank #1 (Strong Buy) and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.9% over the last 60 days.
Teck Resources Ltd Price and ConsensusTeck Resources Ltd Price and Consensus
Teck Resources Ltd price-consensus-chart | Teck Resources Ltd Quote
Teck Resources has a price-to-earnings ratio (P/E) of 5.61, compared with 20.40 for the industry. The company possesses a Value Score of A.
Teck Resources Ltd PE Ratio (TTM)Teck Resources Ltd PE Ratio (TTM)
Teck Resources Ltd pe-ratio-ttm | Teck Resources Ltd Quote
Trinseo TSE: This company which is a materials solutions provider and manufacturer of plastics and latex binders, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.8% over the last 60 days.
Trinseo PLC Price and ConsensusTrinseo PLC Price and Consensus
Trinseo PLC price-consensus-chart | Trinseo PLC Quote
Trinseo has a price-to-earnings ratio (P/E) of 6.34, compared with 31.50 for the industry. The company possesses a Value Score of A.
Trinseo PLC PE Ratio (TTM)Trinseo PLC PE Ratio (TTM)
Trinseo PLC pe-ratio-ttm | Trinseo PLC Quote
PBF Energy PBF: This company which is the leading refiner of crude, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 51.8% over the last 60 days.
PBF Energy Inc. Price and ConsensusPBF Energy Inc. Price and Consensus
PBF Energy Inc. price-consensus-chart | PBF Energy Inc. Quote
PBF Energy has a price-to-earnings ratio (P/E) of 13.07 compared with 20.30 for the industry. The company possesses a Value Score of A.
PBF Energy Inc. PE Ratio (TTM)PBF Energy Inc. PE Ratio (TTM)
PBF Energy Inc. pe-ratio-ttm | PBF Energy Inc. Quote
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PBF Energy Inc. (PBF) : Free Stock Analysis Report Trinseo PLC (TSE) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
PBF Energy PBF: This company which is a leading refiner of crude, has seen the Zacks Consensus Estimate for its current-year earnings increasing 51.8% over the last 60 days.
Petroleo Brasileiro S.A. Petrobras Price and ConsensusPetroleo Brasileiro S.A. Petrobras Price and Consensus
Petroleo Brasileiro S.A. Petrobras price-consensus-chart | Petroleo Brasileiro S.A. Petrobras Quote
Target Hospitality TH: This company which is a specialty rental and hospitality services company in North America, has seen the Zacks Consensus Estimate for its current year earnings increasing 50% over the last 60 days.
Target Hospitality Corp. Price and ConsensusTarget Hospitality Corp. Price and Consensus
Target Hospitality Corp. price-consensus-chart | Target Hospitality Corp. Quote
Teck Resources TECK: This company which is engaged in the exploration for, acquiring, developing, and producing natural resources in Asia, Europe, and North America, has seen the Zacks Consensus Estimate for its current year earnings increasing 55.9% over the last 60 days.
Teck Resources Ltd Price and ConsensusTeck Resources Ltd Price and Consensus
Teck Resources Ltd price-consensus-chart | Teck Resources Ltd Quote
DCP Midstream Partners DCP: This company which is a leading energy infrastructure firm, has seen the Zacks Consensus Estimate for its current year earnings increasing 19.5% over the last 60 days.
DCP Midstream Partners, LP Price and ConsensusDCP Midstream Partners, LP Price and Consensus
DCP Midstream Partners, LP price-consensus-chart | DCP Midstream Partners, LP Quote
Rimini Street RMNI: This company which provides enterprise software support services to education and the public sector, has seen the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Rimini Street, Inc. Price and ConsensusRimini Street, Inc. Price and Consensus
Rimini Street, Inc. price-consensus-chart | Rimini Street, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PBF Energy Inc. (PBF) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report Rimini Street, Inc. (RMNI) : Free Stock Analysis Report Target Hospitality Corp. (TH) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Teck Resources Ltd
VANCOUVER, British Columbia, March 28, 2022 (GLOBE NEWSWIRE) — UBC and Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") today announced significant progress on programs being funded through Teck’s Copper & Health program including the installation of over 400 antimicrobial patches on high-touch surfaces at the University of British Columbia (UBC) Faculty of Applied Science and research that will further the development of advanced copper coating technology to reduce the spread of infection.
Health Canada-registered copper patches have been installed in public areas on surfaces including door handles and railings in nine UBC Applied Science buildings. Manufactured by the Canadian company Coptek Copper Covers, the patches are self-sanitizing adhesive copper covers that are registered with Health Canada and the U.S. Environmental Protection Agency, proven to continuously kill 99.9% of bacteria on surfaces within two hours of contact. Antimicrobial copper patches will create a safer work and learning environment for students, faculty and staff due to copper’s natural antimicrobial properties.
The installations were completed in two phases with 80 patches installed during the first phase in November 2021 followed by 365 in February 2022.
In addition, Teck’s Copper and Health program also provided funding to Dr. Amanda Clifford, an Assistant Professor from UBC’s Department of Materials Engineering for research to develop advanced copper coating technology. The new coating is expected to outperform pure copper in terms of reducing the spread of aggressive infections contracted through contaminated surfaces in hospitals and other health care settings. The research results will go through a peer review process and are expected to be released this year.
As Canada’s top copper producer, Teck is committed to raising awareness and advocating for the use of copper as an innovative solution to healthcare-acquired infections, as well as infections resulting from bacteria spread in busy public spaces through its Copper and Health program.
Together, the copper patch installation and copper coating research will advance the use of antimicrobial copper in creating safer environments in busy public spaces like UBC and in healthcare settings as an innovative solution to healthcare-acquired infections.
In addition to the installation in UBC Applied Science buildings, Teck has installed antimicrobial copper covers in B.C. hospitals including Vancouver General Hospital, Lions Gate Hospital and Kootenay Boundary Regional Hospital and on transit vehicles for Translink and the Toronto Transit Commission (TTC). Teck is also committed to installing copper surfaces in the Teck Emergency Department at the new St. Paul's Hospital in Vancouver as well as Team Canada training facilities in Toronto and Calgary.
Quotes:Don Lindsay, President and CEO, Teck –“Teck is proud to partner with UBC Applied Science on this installation of antimicrobial copper in high-traffic spaces to create a safer environment for students and staff. Thank you to the UBC Applied Science and materials engineering department for their leadership in conducting research to advance technology for antimicrobial copper surfaces which will support making our communities safer.”
James Olson, Dean, UBC Faculty of Applied Science –"It's important that we work with industry leaders like Teck, who display a commitment to innovation and sustainability. When we work together, we're able to quicken our research and see its impact in the real world."
Antimicrobial patches were installed in the following buildings:
Frank Forward Building
Chemical & Biological Engineering Building
Civil and Mechanical Engineering Building
Fred Kaiser Building
Frederic Lasserre Building
Pulp & Paper Centre
School of Nursing
The Rusty Hut
West Mall Annex (SCARP)
About Teck’s Copper & Health ProgramThrough its Copper & Health program, Teck is working with partners across Canada and beyond to increase the use of copper-infused surfaces in healthcare and public spaces to reduce the spread of infections. When installed on high touch surfaces, copper is a proven killer of bacteria, reducing the spread of infection and improving health outcomes. There is no commercial benefit to Teck from the increased use of antimicrobial copper as the amount of metal needed is very small; the goal of the program is to improve health and safety for communities.
For more information about the role of antimicrobial copper, the Copper & Health program, and other examples of copper in action, please visit www.coppersaveslives.com.
About TeckAs one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
About UBC Applied ScienceThe UBC Faculty of Applied Science comprises a unique constellation of disciplines: engineering, nursing, architecture and landscape architecture, and community and regional planning. Research and education in these professional disciplines spans the entire human-centred built environment. The faculty leverages its multidisciplinary strength to address society’s most complex challenges including climate change and human inequity. Split across UBC’s Vancouver and Okanagan campuses, the faculty comprises more than 400 world-class researchers and professors, and more 8,000 students. UBC is consistently ranked as one of the world’s best public research universities.
More information: About Coptek’s antimicrobial patches
Teck Media ContactChris StannellPublic Relations Manager604.699.4368chris.stannell@teck.com
UBC Media ContactLou Corpuz-BosshartMedia Relations Specialist604-822-2048lou.bosshart@ubc.ca
Teck Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations & Strategic Analysis604.699.4621fraser.phillips@teck.com
For Immediate Release
Chicago, IL – March 24, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1886480/is-it-too-late-to-buy-the-commodity-stocks
Is It Too Late to Buy the Commodity Stocks?
Welcome to Episode #307 of the Zacks Market Edge Podcast.
(1:00) – Navigating Commodity Trades During Inflation
(10:10) – Is Now A Good Time To Invest Into Precious Metals?
(20:20) – Where Should Investors Be Looking To Gain Exposure To Commodities?
(27:00) – Episode Roundup: MOS, FCX, SCCO, BHP, RIO, GLD, GDX, GDXJ, CLF, AA
Podcast@Zacks.com
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Zacks Stock Strategist and the editor of Zacks Commodity Innovators newsletter, Jeremy Mullin, joins the discussion to talk about the red-hot commodities sector.
It's not just oil and natural gas which are at multi-year highs. Fertilizers like potash, metals like nickel and copper and agriculture products like wheat have been on a huge run too.
Is it too late for investors to dive into commodity stocks in 2022?
Or is there still further upside in some of these stocks?
Buy the Companies, Not the Commodities
Jeremy had plenty of advice for investors trying to navigate the commodities market including that he thinks investors should focus on the actual commodities companies and not the actual commodities themselves.
The reason?
With commodity prices at multi-year highs, the companies have tremendous free cash flows. Energy companies, for instance, are paying dividends, special dividends and doing massive share buybacks with all of their free cash flow. You won't get that from trying to trade the commodity itself.
5 Commodity Stocks for Your Short List
1. Mosaic (MOS)
Mosaic produces potash and phosphate, two of the three top crop nutrients. The shares are up 66% year-to-date and have soared over 580% the last 2-years.
Yet Mosaic is still cheap, with a forward P/E of just 5.9. Earnings are expected to soar 125% year-over-year as fertilizer prices jump.
Mosaic pays a dividend, currently yielding just 0.7% but it announced it was increasing the dividend by the second quarter of 2022 and it will start a new $1 billion share buyback program.
Should those interested in the agriculture industry consider Mosaic?
2. Freeport-McMoran (FCX)
Freeport-McMoran is one of the world's largest publicly traded copper producers but it also mines gold and molybdenum.
With copper soaring, FCX shares have done the same, jumping 803% over the last 2 years. They have continued to outperform in 2022, adding another 19.5%.
FCX announced in Nov 2021 a $3 billion share repurchase program and a base and variable dividend that would be $0.60 per share in 2022.
Freeport-McMoran is still cheap, with a forward P/E of 13.
If you're looking for a copper play, should FCX be on your list?
3. Southern Copper Corp. (SCCO)
Southern Copper is also one of the world's largest copper producers. In 2021, net sales hit a record high of $10.9 billion, up 36.9% from 2020, thanks to higher product prices. Copper was up 51.1% year-over-year.
Southern Copper is using some of its free cash flow on dividends, with the base dividend currently yielding 5.2%.
Shares are up 24% year-to-date but are not as cheap as FCX, with a forward P/E of 19.
If you're looking for a big base dividend, should you be considering Southern Copper?
4. BHP Group (BHP)
BHP Group is an Australian commodity giant with business in oil, copper, coal, nickel and potash, among other commodities.
Like the others, BHP Group is seeing strong free cash flows. It currently pays a dividend yielding 10.2%.
Shares are up 17.6% year-to-date but BHP Group is still cheap, with a forward P/E of just 8.8.
Earnings are expected to be up another 20% this year.
If you want to own a company with exposure to several different commodities, should BHP Group be on your short list?
5. Rio Tinto Group (RIO)
Rio Tinto is a mining giant headquartered in London. It mines iron ore, copper, aluminum and minerals globally.
In 2021, Rio Tinto saw record full year results with sales up 42% year-over-year.
It saw free-cash-flow of $18 billion, of which it paid out 79% to shareholders. Rio Tinto's dividend is currently yielding 10.4%.
Shares are up 14.2% year-to-date but remain attractively valued with a forward P/E of just 7.1.
Should Rio Tinto be on your short list?
What Else Do You Need to Know about Commodity Stocks in 2022?
Tune into this week's podcast to find out.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FreeportMcMoRan Inc. (FCX) : Free Stock Analysis Report BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report Rio Tinto PLC (RIO) : Free Stock Analysis Report Southern Copper Corporation (SCCO) : Free Stock Analysis Report The Mosaic Company (MOS) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Teck Resources Ltd (TECK)
Vancouver, Canada-based Teck Resources Limited is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy.
TECK sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of A, and has a VGM Score of A. The stock is up 6.9% and up 13.2% over the past one-week and four-week period, respectively, and Teck Resources Ltd has gained 117.2% in the last one-year period as well. Additionally, an average of 7,481,366.50 shares were traded over the last 20 trading sessions.
A company's earnings performance is important for momentum investors as well. For fiscal 2022, 16 analysts revised their earnings estimate higher in the last 60 days for TECK, while the Zacks Consensus Estimate has increased $2.09 to $6.62 per share. TECK also boasts an average earnings surprise of 13%.
Investors should take the time to consider TECK for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
For Immediate Release
Chicago, IL – March 24, 2022 – Stocks in this week’s article are Carter's, Inc. CRI, AutoNation, Inc. AN, Teck Resources Ltd. TECK, TotalEnergies TTE and Marathon Petroleum MPC.
5 PEG-Based GARP Stocks for a Winning Portfolio
In the equity market, investments always need to be prudently hedged in order to overcome uncertainties and limit losses related to external shocks. A question that arises often is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.
The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.
The GARP theory enables strategic mingling of growth and value-investing principles, which gives us a hybrid strategy by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia).
Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here we will discuss the success of four such stocks. These include Carter's, Inc., AutoNation, Inc., Teck Resources Ltd., TotalEnergies and Marathon Petroleum.
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates stocks' P/E ratio with their future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations to calculate the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Here are five out of the 19 stocks that qualified the screening:
Carter's: Headquartered in Atlanta, GA, Carter's is the largest marketer of branded apparel and related products for babies and young children in North America. Notably, the company has a portfolio of popular brands, including Carter's, OshKoshB'gosh, Just One You, Child of Mine, Simple Joys, Skip Hop, and Precious Firsts.
Carter can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, CRI also has an impressive fiscal 2022 expected earnings growth rate of 13.5%.
AutoNation: AutoNation is the largest automotive retailer in the United States. The company offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. In addition, it arranges financing for vehicle purchases through third-party sources.
Apart from a discounted PEG and P/E, AutoNation has a Value Score of A and holds a Zacks Rank #1. AN also had a 34.8% earnings growth rate over the past five years. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Teck Resources: Vancouver, Canada-based Teck Resources is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy. The company's principal products include steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates. Teck Resources also produces molybdenum, gold, silver, germanium, indium, mercury, and cadmium, as well as chemicals, industrial products, and fertilizers.
Teck Resources has an impressive growth rate of 38.7% for the next five years. TECK currently has a Value Score of A and carries a Zacks Rank #2.
TotalEnergies: France-based TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TotalEnergies has operations in more than 130 countries across five continents.
TotalEnergies carries a Zacks Rank of 1 and has a Value Score of A. TTE has an impressive long-term historical growth rate of 10.7%.
Marathon Petroleum: Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil's refining/sales business into a separate, independent and publicly-traded entity. Marathon Petroleum operates in two segments: Refining and Marketing and Pipeline Transportation.
Marathon Petroleum has an impressive growth rate of 18.9% for the next five years. MPC currently has a Value Score of A and carries a Zacks Rank #1.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1886044/5-peg-based-garp-stocks-for-a-winning-portfolio
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report Carter's, Inc. (CRI) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
In the equity market, investments always need to be prudently hedged in order to overcome uncertainties and limit losses related to external shocks. A question that arises often is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability.
The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers.
The GARP theory enables strategic mingling of growth and value-investing principles, which gives us a hybrid strategy by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid sustainable growth potential (Investopedia).
Several stocks, which have surged significantly in the recent past, show an overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here we will discuss the success of four such stocks. These include Carter's, Inc. CRI, AutoNation, Inc. AN, Teck Resources Limited TECK, TotalEnergies TTE and Marathon Petroleum MPC.
A Few More Words on GARP
GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing.
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
It relates stocks’ P/E ratio with their future earnings growth rates.
While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential.
A lower PEG ratio, preferably less than 1, is always better for GARP investors.
Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential.
Unfortunately, this ratio is often neglected due to investors' limitations to calculate the future earnings growth rate of a stock.
There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration.
Here are the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (For more accurate valuation purpose)
Zacks Rank of 1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or #2 have a proven history of success.)
Market Capitalization greater than $1 Billion (This helps us to focus on companies that have strong liquidity.)
Average 20 Day Volume greater than 50,000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5%: Upward estimate revisions add to the optimism, suggesting further bullishness.
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Here are five out of the 19 stocks that qualified the screening:
Carter's: Headquartered in Atlanta, GA, Carter’s is the largest marketer of branded apparel and related products for babies and young children in North America. Notably, the company has a portfolio of popular brands, including Carter’s, OshKoshB'gosh, Just One You, Child of Mine, Simple Joys, Skip Hop, and Precious Firsts.
Carter can be an impressive value investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, CRI also has an impressive fiscal 2022 expected earnings growth rate of 13.5%.
AutoNation: AutoNation is the largest automotive retailer in the United States. The company offers vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products. In addition, it arranges financing for vehicle purchases through third-party sources.
Apart from a discounted PEG and P/E, AutoNation has a Value Score of A and holds a Zacks Rank #1. AN also had a 34.8% earnings growth rate over the past five years. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teck Resources: Vancouver, Canada-based Teck Resources is a diversified resource company committed to mining and mineral development with business units focused on steelmaking coal, copper, zinc and energy. The company's principal products include steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates. Teck Resources also produces molybdenum, gold, silver, germanium, indium, mercury, and cadmium, as well as chemicals, industrial products, and fertilizers.
Teck Resources has an impressive growth rate of 38.7% for the next five years. TECK currently has a Value Score of A and carries a Zacks Rank #2.
TotalEnergies: France-based TotalEnergies SE is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. TotalEnergies has operations in more than 130 countries across five continents.
TotalEnergies carries a Zacks Rank of 1 and has a Value Score of A. TTE has an impressive long-term historical growth rate of 10.7%.
Marathon Petroleum: Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company, in its current form, came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil’s refining/sales business into a separate, independent and publicly-traded entity. Marathon Petroleum operates in two segments: Refining and Marketing and Pipeline Transportation.
Marathon Petroleum has an impressive growth rate of 18.9% for the next five years. MPC currently has a Value Score of A and carries a Zacks Rank #1.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report Carter's, Inc. (CRI) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report TotalEnergies SE Sponsored ADR (TTE) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Teck Resources Ltd (TECK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.
Teck Resources Ltd is one of 242 individual stocks in the Basic Materials sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Teck Resources Ltd is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for TECK's full-year earnings has moved 54.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, TECK has moved about 40.4% on a year-to-date basis. At the same time, Basic Materials stocks have gained an average of 12.9%. This means that Teck Resources Ltd is performing better than its sector in terms of year-to-date returns.
Another stock in the Basic Materials sector, Carpenter Technology (CRS), has outperformed the sector so far this year. The stock's year-to-date return is 35.3%.
Over the past three months, Carpenter Technology's consensus EPS estimate for the current year has increased 4.8%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Teck Resources Ltd belongs to the Mining – Miscellaneous industry, a group that includes 50 individual stocks and currently sits at #71 in the Zacks Industry Rank. On average, stocks in this group have gained 25.1% this year, meaning that TECK is performing better in terms of year-to-date returns.
In contrast, Carpenter Technology falls under the Steel – Speciality industry. Currently, this industry has 4 stocks and is ranked #3. Since the beginning of the year, the industry has moved +39.8%.
Going forward, investors interested in Basic Materials stocks should continue to pay close attention to Teck Resources Ltd and Carpenter Technology as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report Carpenter Technology Corporation (CRS) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Nexa Resources (NEXA). NEXA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.58, which compares to its industry's average of 9.31. Over the last 12 months, NEXA's Forward P/E has been as high as 10.94 and as low as 3.66, with a median of 5.08.
Another notable valuation metric for NEXA is its P/B ratio of 0.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.28. Over the past 12 months, NEXA's P/B has been as high as 1 and as low as 0.51, with a median of 0.68.
Investors could also keep in mind Teck Resources (TECK), an Mining – Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Teck Resources is trading at a forward earnings multiple of 6.33 at the moment, with a PEG ratio of 0.16. This compares to its industry's average P/E of 9.31 and average PEG ratio of 1.
Over the last 12 months, TECK's P/E has been as high as 12.27, as low as 6.23, with a median of 8.44, and its PEG ratio has been as high as 0.61, as low as 0.16, with a median of 0.25.
Furthermore, Teck Resources holds a P/B ratio of 1.08 and its industry's price-to-book ratio is 1.28. TECK's P/B has been as high as 1.17, as low as 0.61, with a median of 0.78 over the past 12 months.
These are only a few of the key metrics included in Nexa Resources and Teck Resources strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NEXA and TECK look like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nexa Resources S.A. (NEXA) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Investors with an interest in Mining – Miscellaneous stocks have likely encountered both Teck Resources Ltd (TECK) and Wheaton Precious Metals Corp. (WPM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Teck Resources Ltd has a Zacks Rank of #2 (Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TECK is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TECK currently has a forward P/E ratio of 5.97, while WPM has a forward P/E of 34.03. We also note that TECK has a PEG ratio of 0.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WPM currently has a PEG ratio of 6.81.
Another notable valuation metric for TECK is its P/B ratio of 1.08. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WPM has a P/B of 3.44.
These are just a few of the metrics contributing to TECK's Value grade of A and WPM's Value grade of D.
TECK has seen stronger estimate revision activity and sports more attractive valuation metrics than WPM, so it seems like value investors will conclude that TECK is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Teck Resources Ltd (TECK), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Teck Resources Ltd currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
Let's discuss some of the components of the Momentum Style Score for TECK that show why this company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For TECK, shares are up 0.89% over the past week while the Zacks Mining – Miscellaneous industry is up 0.43% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.59% compares favorably with the industry's 4.68% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Teck Resources Ltd have increased 38.1% over the past quarter, and have gained 80.71% in the last year. On the other hand, the S&P 500 has only moved -4.14% and 12.52%, respectively.
Investors should also pay attention to TECK's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TECK is currently averaging 7,377,013 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TECK.
Over the past two months, 16 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TECK's consensus estimate, increasing from $4.35 to $6.55 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been 2 downward revisions in the same time period.
Bottom Line
Given these factors, it shouldn't be surprising that TECK is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Teck Resources Ltd on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here.
By Sonali Paul and Sameer Manekar
MELBOURNE (Reuters) -Exxon Mobil Corp and BHP Group said on Thursday they will go ahead with a project to boost gas output from their Gippsland Basin Kipper field off southeast Australia, which would help fill a looming gas shortage in the local market.
Exxon's Esso Australia said the project would cost about A$400 million ($291 million) to extract an additional 200 petajoules (PJ) of gas over the coming five years, adding that about 30 PJ will be produced next year.
The country's regulators have warned that eastern Australia faces a gas shortfall from 2026, largely because the ageing gas fields in the Gippsland Basin Joint Venture, which has been the biggest supplier into the market for decades, are drying up.
Esso operates the joint venture in a 50-50 partnership with global miner BHP.
The extra production from the Gippsland Basin will come online ahead of five proposed liquefied natural gas (LNG) import terminals, looking to serve the same market. Only one of those has begun preliminary construction work.
BHP's stake in the Gippsland Basin joint venture is set to go to Woodside Petroleum pending a vote of the Australian company's shareholders in May on a merger with BHP's petroleum business.
BHP will continue to contribute its 50% share of the Gippsland Basin Joint Venture's development spending for as long as it remains a stakeholder, a BHP spokesperson said.
Esso Australia also said it was advancing funding decisions to begin production from the Turrum field in Bass Strait, offshore Victoria.
($1 = 1.3723 Australian dollars)
(Reporting by Sameer Manekar in Bengaluru and Sonali Paul in Melbourne; Editing by Uttaresh.V and Rashmi Aich)
* Extra gas output needed by mid-decade
* First 30 PJ of extra output expected in 2023
* Exxon vying with proposed LNG import terminals (Adds BHP comment, LNG import background)
By Sonali Paul and Sameer Manekar
MELBOURNE, March 17 (Reuters) – Exxon Mobil Corp and BHP Group said on Thursday they will go ahead with a project to boost gas output from their Gippsland Basin Kipper field off southeast Australia, which would help fill a looming gas shortage in the local market.
Exxon's Esso Australia said the project would cost about A$400 million ($291 million) to extract an additional 200 petajoules (PJ) of gas over the coming five years, adding that about 30 PJ will be produced next year.
The country's regulators have warned that eastern Australia faces a gas shortfall from 2026, largely because the ageing gas fields in the Gippsland Basin Joint Venture, which has been the biggest supplier into the market for decades, are drying up.
Esso operates the joint venture in a 50-50 partnership with global miner BHP.
The extra production from the Gippsland Basin will come online ahead of five proposed liquefied natural gas (LNG) import terminals, looking to serve the same market. Only one of those has begun preliminary construction work.
BHP's stake in the Gippsland Basin joint venture is set to go to Woodside Petroleum pending a vote of the Australian company's shareholders in May on a merger with BHP's petroleum business.
BHP will continue to contribute its 50% share of the Gippsland Basin Joint Venture's development spending for as long as it remains a stakeholder, a BHP spokesperson said.
Esso Australia also said it was advancing funding decisions to begin production from the Turrum field in Bass Strait, offshore Victoria.
($1 = 1.3723 Australian dollars) (Reporting by Sameer Manekar in Bengaluru and Sonali Paul in Melbourne; Editing by Uttaresh.V and Rashmi Aich)
Teck Resources Ltd
VANCOUVER, British Columbia, March 17, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck”) announced today the release of our 21st annual Sustainability Report, highlighting our sustainability and ESG performance in 2021 and progress on our sustainability strategy goals.
“Our focus at Teck is on responsibly providing the essential resources needed to improve the global standard of living while caring for people, communities and the environment,” said Don Lindsay, President and CEO. “Our annual Sustainability Report outlines our ESG performance for the year and the progress we’ve made towards achieving the goals of our sustainability strategy.”
Teck’s approach to responsible mining is underpinned by a long-term sustainability strategy, which sets out goals in the areas of Health and Safety, Climate Change, Responsible Production, Our People, Water, Tailings Management, Communities and Indigenous Peoples, and Biodiversity and Reclamation. This includes our recently expanded net-zero climate strategy, which builds on our existing commitment to achieve net-zero emissions across operations by 2050. Under the expanded strategy, we have set a goal to achieve net-zero Scope 2 (purchased electricity) greenhouse gas emissions by 2025 and announced an ambition to achieve net-zero Scope 3 (value chain) emissions by 2050.
“Teck is already one of the world’s lowest carbon-intensity producers of copper, zinc and steelmaking coal, and we are taking significant action to support a cleaner future and further reduce our carbon through our expanded climate strategy,” said Marcia Smith, Senior Vice President, Sustainability and External Affairs.
2021 Sustainability achievements included:
Reduced High-Potential Incident Frequency by 38% from the previous year and Lost-Time Disabling Injury Frequency by 11%
Increased the number of women in senior management to 29% in 2021 from 20% in 2020, with women now comprising 21% of our total workforce (up from 12% in 2011)
Sourced 96% of all electricity requirements from renewable, zero-carbon power sources
Decreased the carbon intensity of operations by 5%, in line with our goal to reduce our carbon intensity by 33% by 2030
Advanced our climate goals, including announcing a zero-emissions haul truck partnership and an agreement to use energy-efficient eco-bulk carriers to ship a portion of our steelmaking coal, which could reduce up to 45,000 tonnes of CO2 per year, equivalent to removing nearly 10,000 passenger vehicles from the road
Set an annual record for reclamation progress in the B.C. Elk Valley, with over 800 hectares of former mining lands revegetated
Significantly advanced the Elk Valley Water Quality Plan in B.C. with the completion of two major projects – the Elkview Saturated Rock Fill expansion and the Fording River South Active Water Treatment Facility. In 2022, we expect to achieve one of the primary goals of the Elk Valley Water Quality Plan of stabilizing and reversing the selenium trend
Advanced construction of a seawater desalination plant at our QB2 copper project in Chile to avoid the use of fresh water in this water-scarce region
Invested $23.9 million in local, regional, national and global programs supporting positive social, economic and environmental outcomes in the areas where we operate
Teck’s 2021 Sustainability Report and Annual Report are available on our website. Other reports available from Teck including our Economic Contribution Report and the TCFD-aligned Climate Change Outlook 2021 report, are also available on the Disclosure Portal.
In 2021, Teck was named to the S&P Dow Jones Sustainability World Index (DJSI) for the 12th consecutive year and ranked #1 in the Metals and Mining industry category on the DJSI for 2021. Teck received an AA rating from MSCI in 2021 and has been a constituent of the MSCI World Leaders ESG index since 2015. Teck is ranked first among North America Metals and Mining companies by Moody’s ESG, rated Prime by ISS ESG and ranked #2 in the Diversified Metals industry by Sustainalytics.
Forward Looking StatementsThis news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “will”, “estimate”, “expect”, “ambition” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.
These forward-looking statements include, but are not limited to, statements relating to long- and short-term sustainability goals, including statements relating to our commitment to reduce greenhouse gas emissions, to achieve net zero greenhouse gas emissions or to reduce the carbon intensity of our operations and the actions we intend to take to achieve those commitments and the expected impact or effect of those action; and our expectation that we will achieve the goal of stabilizing and reducing the selenium trend in the Elk Valley.
The forward-looking statements in this report are based on a number of estimates, projections, beliefs and assumptions the management team believed to be reasonable as of the date of this report, though inherently uncertain and difficult to predict, including but not limited to expectations and assumptions concerning: the development, availability, performance and effectiveness of technologies needed to achieve our sustainability goals and priorities; the availability of clean energy sources and zero-emissions alternatives for transportation on reasonable terms; our ability to successfully implement our technology and innovation strategy; the performance of new technologies in accordance with our expectations; our ability to achieve our climate goals and the longer term impacts of those goals on our business; environmental compliance costs generally; effectiveness of additional treatment capacity at scale, operation of water treatment technology and facilities as expected; our ability to implement new source control or mine design strategies on commercially reasonable terms without impacting production objectives; and assumptions regarding the development of our business generally and general economic conditions.
Factors that may cause actual results to vary include, but are not limited to actual climate-change consequences, adequate technology not being available on adequate terms, changes in laws and governmental regulations or enforcement thereof that impact our operations or strategy, inability to achieve anticipated performance of current and new technologies relating to our Elk Valley water treatment efforts, ongoing monitoring may reveal unexpected environmental conditions requiring additional remedial measures, and changes in commodity prices or general economic conditions. We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements.
Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our most recent Annual Information Form filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile. We assume no obligation to update forward-looking statements except as required under securities laws.
About TeckAs one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
Teck Media Contact:Chris StannellPublic Relations Manager604.699.4368chris.stannell@teck.com
Teck Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations and Strategic Analysis604.699.4621fraser.phillips@teck.com
In this article, we discuss 10 stocks to invest in today according to Orkun Kilic's Berry Street Capital. If you want to skip our detailed analysis of Kilic's history, investment philosophy, and hedge fund performance, go directly to 5 Stocks to Invest In Today According to Orkun Kilic's Berry Street Capital.
Orkun Kilic graduated from Harvard Business School with a master's degree in business administration. He began his professional career with Fiba Capital as an Investment Analyst. He also worked as an associate at Morgan Stanley. Orkun Kilic was the managing partner of Paulson Europe LLP and the portfolio manager of the Paulson European Opportunities Fund before forming Berry Street Capital.
Orkun Kilic created Berry Street Capital, a London-based hedge fund, in 2019. Technology, healthcare, financial services, real estate, and essential materials are primary areas in which Berry Street Capital invests. As of the fourth quarter of 2021, the hedge fund's 13F portfolio has about $970.45 million in managed securities.
Some of the essential holdings to analyze based on Orkun Kilic's stock portfolio in the fourth quarter of 2021 are Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), among others.
Twitter, Inc. (NYSE:TWTR) is a new arrival in Orkun Kilic's portfolio, as his hedge fund bought about 37,500 shares of the company in Q4, worth $1.62 million. On March 10, Deutsche Bank analyst Benjamin Black initiated coverage of Twitter, Inc. (NYSE:TWTR), rating the stock as a 'Hold' and giving a price target of $35.
10 Stocks to Invest In Today According to Orkun Kilic’s Berry Street Capital
Mangostar/Shutterstock.com
Another stock that was added to the Kilic's portfolio in the fourth quarter is Discovery, Inc. (NASDAQ:DISCA), in which he purchased 350,000 shares. Credit Suisse analyst Douglas Mitchelson decreased his price objective on Discovery, Inc. (NASDAQ:DISCA) from $61 to $52 on February 14 and maintained an 'Outperform' rating on the stock.
Berry Street Capital holds 90,000 shares in Cerner Corporation (NASDAQ:CERN), according to its 13F filing for the fourth quarter of 2021. On February 22, Cerner Corporation (NASDAQ:CERN) reported earnings per share of $0.93 for the fourth quarter, exceeding estimates by $0.05. In addition, the company's quarterly revenue was up 3.6% from the prior-year quarter, amounting to $1.45 billion.
Our Methodology
With this background in mind, let’s start our list of 10 stocks to invest in today according to Orkun Kilic's Berry Street Capital. For this list, we considered Kilic's 13F portfolio as of the end of Q4 2021.
Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Stocks to Invest In Today According to Orkun Kilic's Berry Street Capital10. RR Donnelley & Sons Company (NYSE:RRD)
Berry Street Capital Stake Value: $14,808,000
Percentage of Berry Street Capital's 13F Portfolio: 1.52%
Number of Hedge Fund Holders: 26
An integrated communications provider, RR Donnelley & Sons Company (NYSE:RRD) helps businesses design, manage, deliver, and optimize multichannel marketing and business communications. Chatham Asset Management and RR Donnelley & Sons Company (NYSE:RRD) announced on February 25 that they finalized a deal in which Chatham affiliates bought RRD for $10.85 per share in cash.
Carl Tiedemann and Michael Tiedemann’s TIG Advisors is the most significant stakeholder of RR Donnelley & Sons Company (NYSE:RRD) in our database, with 3.28 million shares worth $36.90 million. In the fourth quarter, Berry Street Capital added RR Donnelley & Sons Company (NYSE:RRD) to its portfolio, buying 1.32 million shares.
Hedge funds are loading up on RR Donnelley & Sons Company (NYSE:RRD), as Insider Monkey’s data shows that 26 hedge funds held stakes in the company as of the end of the fourth quarter of 2021, compared to 14 funds in the preceding quarter.
Apart from Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), RR Donnelley & Sons Company (NYSE:RRD) is also one of the favorite stocks of Berry Street Capital.
9. CyrusOne Inc. (NASDAQ:CONE)
Berry Street Capital Stake Value: $15,701,000
Percentage of Berry Street Capital's 13F Portfolio: 1.61%
Number of Hedge Fund Holders: 43
CyrusOne Inc. (NASDAQ:CONE) is a real estate investment trust that owns and maintains enterprise-class, multi-tenant, carrier-neutral, and single-tenant data center buildings. Elite hedge funds held significant stakes in CyrusOne Inc. (NASDAQ:CONE) in Q4 2021. The fourth quarter database of Insider Monkey indicated that 43 hedge funds were bullish on CyrusOne Inc. (NASDAQ:CONE), up from 27 funds in the prior quarter.
Orkun Kilic loaded up on CyrusOne Inc. (NASDAQ:CONE) in the fourth quarter, increasing his holding in the company by a whopping 205%. Berry Street Capital owns 175,000 shares of the company, worth $15.70 million. On February 16, CyrusOne (NASDAQ:CONE) declared a quarterly dividend of $0.52 per share, in line with its previous payout.
On February 2, TD Securities analyst Jonathan Kelcher downgraded CyrusOne Inc. (NASDAQ:CONE) to 'Tender' from 'Hold', with a $90.50 price objective, after the approval of the REIT's takeover by Global Infrastructure Partners and KKR & Co. Inc. (NYSE:KKR).
8. Pilgrim's Pride Corporation (NASDAQ:PPC)
Berry Street Capital Stake Value: $16,215,000
Percentage of Berry Street Capital's 13F Portfolio: 1.67%
Number of Hedge Fund Holders: 31
In the United States and Mexico, Pilgrim's Pride Corporation (NASDAQ:PPC) makes prepared and fresh chicken products. BMO Capital analyst Kenneth Zaslow upgraded Pilgrim's Pride Corporation (NASDAQ:PPC) to 'Outperform' from 'Market Perform' on March 10, with a $30 price objective, up from $28.
As of the end of the fourth quarter, 31 hedge funds in Insider Monkey's database held stakes in Pilgrim's Pride Corporation (NASDAQ:PPC), an increase compared to 25 funds in the preceding quarter. In addition, Berry Street Capital also strengthened its position in Pilgrim's Pride Corporation (NASDAQ:PPC) by buying an additional 125,000 shares. This makes their stake in Pilgrim's Pride Corporation (NASDAQ:PPC) total 575,000 shares worth $16.22 million.
7. BHP Group Limited (NYSE:BHP)
Berry Street Capital Stake Value: $16,437,000
Percentage of Berry Street Capital's 13F Portfolio: 1.69%
Number of Hedge Fund Holders: 21
BHP Group Limited (NYSE:BHP) is a mining firm that specializes in iron ore, metallurgical coal, and copper exploration, development, production, and processing. On March 10, Deutsche Bank analyst Liam Fitzpatrick raised his price target on BHP Group Limited (NYSE:BHP) to 2,300 GBp from 2,100 GBp and reiterated a 'Hold' rating on the shares.
BHP Group Limited (NYSE:BHP) issued a semi-annual dividend of $3.00 per share on February 23, a 25% drop from the previous payout of $4.00. Orkun Kilic initiated a new stake in BHP Group Limited (NYSE:BHP) in the fourth quarter of 2021, purchasing 275,000 shares of the mining company, worth $16.44 million.
As of the end of the fourth quarter, 21 hedge funds in the database of Insider Monkey reported owning stakes in BHP Group Limited (NYSE:BHP), worth $1 billion. This is compared to 18 funds being bullish on the stock in Q3, with stakes amounting to $899.84 million.
Harding Loevner, in its first quarter 2021 investor letter, mentioned BHP Group (NYSE:BHP). Here is what the fund said:
“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low-cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”
6. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Berry Street Capital Stake Value: $23,007,000
Percentage of Berry Street Capital's 13F Portfolio: 2.37%
Number of Hedge Fund Holders: 66
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is a multinational advising and solutions firm that helps clients convert risk into opportunity worldwide. Willis Towers Watson Public Limited Company (NASDAQ:WTW) changed its Nasdaq ticker symbol from WLTW to WTW on January 7.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) recently saw a decrease in hedge fund sentiment. The number of long hedge fund positions declined to 66 at the end of the fourth quarter, compared to 75 positions in the previous quarter. First Eagle Investment Management is the most significant stakeholder of Willis Towers Watson Public Limited Company (NASDAQ:WTW) among that group, trimming its stake in the company by 1% during Q4 to 4.74 million shares worth almost $1.13 billion.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) was downgraded to 'Equal Weight' from 'Overweight' by Wells Fargo analyst Elyse Greenspan on February 9, with a price objective of $240, down from $284. According to the analyst, the fourth quarter revealed that Willis Towers Watson Public Limited Company (NASDAQ:WTW) will need time to recover to a level of organic growth akin to its peers.
Watson Public Limited Company (NASDAQ:WTW), like Twitter, Inc. (NYSE:TWTR), Discovery, Inc. (NASDAQ:DISCA), and Cerner Corporation (NASDAQ:CERN), is gaining the attention of Orkun Kilic.
In its third quarter 2021 investor letter, Vltava Fund mentioned Willis Towers Watson Public Limited Company (NASDAQ:WLTW). Here is what the fund said:
“The second position is much larger and was thrown into our hands by an unexpected turn of events. It is the stock of Willis Towers Watson. This is a British company with roots dating back to 1828. WLTW is the third-largest insurance broker in the world. This is a sector with which we are very familiar, as some time ago we held in our portfolio shares of its slightly larger competitor AON.
It was AON in fact that announced last spring it had agreed to merge with WLTW. In the merger, WLTW shareholders would have received AON shares. As is usually the case with such announcements, investors stepped in to conduct what is known as merger arbitrage. In this particular case, they bought WLTW shares and sold short AON shares in order to profit from the fact that the prices of the two stocks did not yet fully reflect the exchange ratio in the merger. Moreover, merger arbitrage commonly makes extensive use of leverage in order to increase profits…” (Click here to see the full text)
Click to continue reading and see 5 Stocks to Invest In Today According to Orkun Kilic's Berry Street Capital.
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Disclosure: None. 10 Stocks to Invest In Today According to Orkun Kilic's Berry Street Capital is originally published on Insider Monkey.
In this article, we will look at 10 cheap nickel stocks to invest in today. We will also see how volatile the nickel market has gotten, and how the commodity has surged amid the Ukraine crisis. To jump ahead to the top stocks to consider, check out 5 Cheap Nickel Stocks to Invest In Today.
Nickel is one of the most widely used metals today. From being used to make coins to its use by the electric automobile industry to make high-capacity batteries so drivers can get the most mileage off a full charge, nickel has a broad range of industrial applications. According to HSBC metals and mining analysts, the demand for nickel in 2021 from batteries was roughly 11% of the overall demand for the metal.
According to Global Data, global nickel production was projected to reach 2.42 million tonnes in 2021, growing at a rate of 6.8% for the year. The production of the metal suffered in 2020 by 4.2%, dropping the production number to 2.27 million tonnes.
According to Knoema, nickel prices sat at $17,577 per tonne in the second quarter of 2021, up 44% year-over-year, from $12,179 per tonne. The World Bank estimated nickel prices would drop to $16,000 per tonne at some point in 2022, and reach a maximum of $18,000 per tonne by the end of the year. This may have been the case if Vladimir Putin had not gone to war against Ukraine.
Commodity Prices Reach Record Highs
The Russian invasion of Ukraine has resulted in increased market volatility and surging inflation. The sanctions imposed on Russia have not only resulted in oil prices rallying to $130 per barrel but have also caused other commodity prices to reach record highs as well. Gold prices were pushed up to $2000 per ounce, Copper hit an all-time high of $10,070 per tonne, but none of these commodities made the London Metal Exchange halt trading, except for nickel.
Nickel Prices Soar
Russia is responsible for supplying 10% of nickel around the world. The sanctions placed on Russia caused supply chain disruptions which in turn caused nickel prices to rise. On March 8, 2022, the London Metal Exchange was forced to halt the trading of nickel after the prices for the commodity rose exponentially. The London Metal Exchange's three-month nickel contract on March 7, 2022, climbed to $54,880 per tonne, up from $25,000 per tonne a week earlier. The price continued to rise exponentially, skyrocketing to $101,365 per tonne, before dipping to $80,000 within 24 hours, at which point trading was suspended.
Among some of the most famous nickel mining companies are BHP Group (NYSE: BHP), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE:NEM). However, these stocks did not rank among the 10 cheap nickel stocks to invest in today since their share prices are not budget-friendly. Read on to see the 10 cheap nickel stocks to invest in today.
10 Cheap Nickel Stocks to Invest In Today
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Our methodology
For our list of 10 cheap nickel stocks to invest in today, we scoured Reddit forums and looked up mining companies that are popular among hedge funds and whose share prices are under $40. We included the hedge fund sentiment and analyst ratings for each stock. We believe that the hedge fund sentiment for a stock can allow our readers to gain more perspective when looking for investment options, and can help them make informed investment decisions. Companies are ranked according to their share price, in descending order.
Note: All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q4 2021 reporting period.
Without further ado, let's look at 10 cheap nickel stocks to invest in today.
10 Cheap Nickel Stocks to Invest In Today10. Allegheny Technologies Incorporated (NYSE:ATI)
Number of Hedge Fund Holders: 27
Share Price as of March 11: $26.84
Allegheny Technologies Incorporated (NYSE:ATI) manufactures and markets specialty materials and components worldwide. In February, JPMorgan analyst Seth Seifman raised his price target on Allegheny Technologies (NYSE:ATI) to $31 from $26, while maintaining an 'Overweight' rating on the shares.
On February 2, 2022, Allegheny Technologies Incorporated (NYSE:ATI) announced its earnings for the fiscal fourth quarter of 2021, which ended up being a profitable quarter for the company. Allegheny's earnings per share came in at $0.25, beating estimates by $0.14. Allegheny Technologies Incorporated (NYSE:ATI) generated revenue of roughly $765.40 million, up 16.27% year-over-year from $658.30 million, and beating revenue estimates by $42.20 million. Moreover, the stock has gained 50.06% over the past six months.
As of the fourth quarter of 2021, 27 hedge funds held stakes in Allegheny Technologies Incorporated (NYSE:ATI) worth over $230 million. This is compared to 26 positions in the previous quarter, with a total value of $256.15 million. The hedge fund sentiment for Allegheny Technologies Incorporated (NYSE:ATI) is therefore positive and likely to continue on that trajectory in 2022.
As of March 3, 2022, D E Shaw is the leading stakeholder in the company among the funds tracked by Insider Monkey, owning a stake worth $57.84 million. The investment accounts for 0.04% of the hedge fund's investment portfolio.
9. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 25
Share Price as of March 11: $19.08
Vale S.A. (NYSE:VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking in Brazil and internationally. The company operates through three segments: Ferrous Minerals, Base Metals, and Coal. The Base Metals segment produces and extracts nickel and its by-products.
As of March 11, 2022, the stock has a forward dividend yield of 7.47% and boasts 3 years of consistent dividend increases. On top of this, Vale S.A. (NYSE:VALE) shares have gone up by 38.09% year-to-date.
Earlier this month, Deutsche Bank analyst Liam Fitzpatrick raised his price target on Vale S.A. (NYSE:VALE) to $20 from $19 and reiterated a 'Buy' rating on the shares.
Vale S.A. (NYSE:VALE) was spotted in 25 hedge funds' portfolios as of the end of the fourth quarter of 2021, with the total value of these hedge funds' positions in the company being valued at $1.71 billion. Fisher Asset Management was the primary stakeholder in the company by value, owning a stake in Vale S.A. (NYSE:VALE) worth approximately $434.3 million.
Here's Miller Value Partners' take on the stock from the fund's Q3 2021 investor letter:
“Vale (VALE) was the top detractor over the quarter, falling 32.6% in sympathy with iron ore’s 48% decline from record highs on China capacity curbs and growing fears of financial issues within the property sector. Vale reported Q2 EBITDA of $11.24Bn, slightly below consensus of $11.47Bn on higher than expected iron ore cash costs. Free cash flow of $6.5Bn (35% annualized yield) came in well ahead of expectations, driving $2.6Bn of stock buybacks and a 1H21 dividend of $7.6Bn, implying year-to-date (YTD) shareholder returns of roughly $13.8Bn (19% of the current market cap). Management maintained FY21 production guidance for iron ore of 315-335 Metric tons (Mt) and lowered year-end 2022 exit capacity to 370Mt (from 400Mt) due to Northern System licensing delays. Additionally, the company hosted their annual Investor Day, outlining new production initiatives aimed at becoming a key supplier to steelmakers in light of decarbonization goals.”
8. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 10
Share Price as of March 11: $17.83
Sibanye Stillwater Limited (NYSE:SBSW) is a precious metals mining company. The company produces gold, platinum group metals, and by-products such as nickel, copper, and chrome as well. On February 4, 2022, Sibanye Stillwater Limited (NYSE:SBSW) announced that it had completed the acquisition of the Sandouville nickel hydrometallurgical processing facility from Eramet SA after fulfilling the terms and conditions on the Share Purchase Agreement which was signed last November.
In early-March, Sibanye-Stillwater (NYSE:SBSW) reported that its revenue for 2021 was $11.6 billion, up 35% year-over-year. As of March 11, 2022, the stock has a forward dividend yield of 7.24% and has gained 22.66% over the past six months.
On March 10, 2022, Deutsche Bank analyst Liam Fitzpatrick raised his price target on Sibanye Stillwater (NYSE:SBSW) to $21 from $18.50 and maintained a 'Buy' rating on the shares.
Sibanye Stillwater (NYSE:SBSW) is growing slightly popular among hedge funds. At the close of the fourth quarter of 2021, 10 hedge funds held stakes in the company, worth roughly $166.03 million. This is compared to 9 hedge funds in the third quarter, with stakes worth $141.72 million. Condire Investors is the largest stakeholder in the company among that group, owning a position valued at $60.73 million. The investment accounts for a sizable 12.08% of the value of the fund's Q4 2021 portfolio.
Other nickel stocks that are popular among hedge funds today include BHP Group (NYSE:BHP), Rio Tinto Group (NYSE:RIO), and Newmont Corporation (NYSE:NEM).
Desert Lion Capital, an investment management firm, shared its insights on Sibanye Stillwater (NYSE:SBSW) in its Q3 2021 investor letter. Here's what the firm had to say:
“Sibanye Stillwater is one of the largest PGM (platinum group metal) producers in the world with major operations in South Africa and the U.S. They also have gold mining operations in SA. There is significant upside optionality in their growing lithium, nickel, and uranium activities, which are not yet contributing to earnings and not recognized by the market in SSW’s price.
During the third quarter, the company reported record earnings for the interim period ended June 2021. TTM EPS was R12.03, placing the stock on a PE multiple of 4. Cash generation was excellent, and the company is effectively debt free with surplus net cash. The management team continues to stay disciplined in their capital allocation, using cash profits to settle debt, repurchase 5% of the company’s shares at a discount, pay a healthy dividend (~11% annualized dividend yield), and expand their battery metals strategy with lithium and nickel acquisitions… (Click here to see the full text)
..Sibanye Stillwater is a well-managed, profitable business with excellent capital allocation discipline. I view it as a dividend-paying call option on the normalization of auto manufacturing, climate change initiatives, and inflation. The company’s lithium, nickel, and uranium activities also position them to participate in the continued drive towards “cleaner” energy, and so far, these options are not priced in at all.”
7. SilverCrest Metals Inc. (NYSE:SILV)
Number of Hedge Fund Holders: 12
Share Price as of March 11: $9.21
SilverCrest Metals Inc. (NYSE:SILV) was spotted in 12 hedge funds' portfolios as of the close of 2021, with their collective holdings valued at $108.64 million, up from $90.57 million in the third quarter of 2021, when 13 hedge funds held stakes in the company.
Sprott Asset Management is the largest shareholder in the company among those 12 funds, owning more than 7.4 million SilverCrest Metals Inc. (NYSE:SILV) shares valued at $58.8 million, which accounts for 3.69% of Sprott Asset's fourth quarter 2021 investment portfolio.
In February, Desjardins analyst Jonathan Egilo initiated coverage of SilverCrest Metals Inc. (NYSE:SILV) with a 'Buy' rating and gave the stock a price target of C$15.25 ($11.99).
6. PolyMet Mining Corp. (NYSE:PLM)
Number of Hedge Fund Holders: 5
Share Price as of March 11: $3.60
PolyMet Mining Corp. (NYSE:PLM) explores for and develops natural resource properties. Its primary mineral property is the NorthMet project, a polymetallic project that hosts copper, nickel, cobalt, gold, silver, and platinum group metals. As of March 11, 2022, the share price for PolyMet Mining Corp. (NYSE:PLM) sits at $3.60 and the stock has gained 9.39% over the past six months.
Alan S. Parsow's Elkhorn Partners is the dominant shareholder in PolyMet Mining Corp. (NYSE:PLM) among the funds tracked by Insider Monkey's database. The fund's stake in PolyMet Mining Corp. (NYSE:PLM) is valued at $305 million, which covers 0.17% of Elkhorn Partners' 13F portfolio value.
By the end of the fourth quarter of 2021, five hedge funds held stakes in PolyMet Mining Corp. (NYSE:PLM) worth $754 million, up from $602 million in stakes a quarter earlier, which were also held by the same five hedge funds. Three of those funds made substantial additions to their PLM positions during Q4.
PolyMet Mining Corp. (NYSE:PLM) is one of the cheapest nickel stocks to invest in today. Other not-so-budget-friendly stock options include BHP Group (NYSE: BHP), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE:NEM).
Click to continue reading and see 5 Cheap Nickel Stocks to Invest In Today.
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Disclose. None. 10 Cheap Nickel Stocks to Invest In Today is originally published on Insider Monkey.
Teck Resources Ltd
VANCOUVER, British Columbia, March 16, 2022 (GLOBE NEWSWIRE) — Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today announced Highland Valley Copper Operations (HVC) has been awarded the Copper Mark.
Copper Mark is a voluntary assurance framework to promote responsible production practices and demonstrate commitment to the United Nations Sustainable Development Goals. To be verified for Copper Mark, HVC was assessed and independently verified against 32 responsible production criteria including greenhouse gas emissions, community health and safety, respect for Indigenous rights and business integrity.
“Copper is an essential material for the low-carbon future, and our focus is on helping meet the growing global need for copper in an environmentally and socially responsible way,” said Don Lindsay, President and CEO. “We are proud that Highland Valley Copper has been awarded the Copper Mark, demonstrating the operation’s commitment to sustainability and to ensuring customers have the information they need on our performance as a responsible copper producer.”
“We are pleased to welcome HVC among the growing number of sites that have received the Copper Mark,” said Michèle Brülhart, Executive Director of the Copper Mark. “HVC is our first Copper Mark recipient in Canada, and we congratulate them on their commitment to responsible practices.”
Highland Valley Copper Operations is Teck’s first copper operation to achieve certification, with plans for each of Teck’s copper operations to be verified in the future. This includes Carmen de Andacollo and QB2, which is expected to begin production in the second half of 2022. More information about the Copper Mark verification can be found here.
Teck’s approach to operating responsibly is underpinned by a long-term sustainability strategy that sets out goals in the areas of Health and Safety, Climate Change, Responsible Production, Our People, Water, Tailings Management, Communities and Indigenous Peoples, and Biodiversity and Reclamation. Learn more about Teck’s sustainability strategy here.
Forward-Looking StatementsThis news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as forward-looking statements). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “will”, “estimate”, “expect”, “ambition” and similar expressions is intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These statements speak only as of the date of this news release.
These forward-looking statements include, but are not limited to, statements relating to our plans to achieve Copper Mark certification at our other copper operations and the expected timing thereof and statements relating to expected timing for production at our QB2 project.
The forward-looking statements in this news release are based on a number of estimates, projections, beliefs and assumptions the management team believed to be reasonable as of the date of this news release, though inherently uncertain and difficult to predict, including, but not limited to, expectations and assumptions concerning: general business and economic conditions; acts of foreign and domestic governments; receipt of permits and other regulatory and governmental approvals and the timing thereof; our ability to procure equipment and operating supplies and services in sufficient quantities or on a timely basis; the availability of employees; engineering and construction timetables; the impacts of COVID-19 on the construction and development of our QB2 project; and our ongoing relations with our employees and our business and joint venture partners. We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements.
Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control. Further information concerning risks, assumptions and uncertainties associated with these forward-looking statements and our business can be found in our most recent Annual Information Form filed under our profile on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov) under cover of Form 40-F, as well as subsequent filings that can also be found under our profile. We assume no obligation to update forward-looking statements except as required under securities laws.
About The Copper MarkThe Copper Mark is an assurance framework to promote responsible practices and demonstrate the copper industry’s contribution to the United Nations Sustainable Development Goals. The Copper Mark uses a rigorous site-level assessment process to independently verify whether individual copper producing sites have responsible production practices.
The Copper Mark is built on a genuine commitment to responsible production as we aim to mitigate the environmental and social impact of the copper industry, and positively contribute to sustainable development goals and the green transition.
The Copper Mark framework involves a robust three-year re-evaluation process conducted by independent external auditors at site-level for participants. Participants commit to continual improvement, building the management systems necessary to ensure ongoing legal compliance. To achieve Copper Mark verification, operations also need to demonstrate efforts to achieve Free, Prior and Informed Consent (FPIC) and maintain trusted, collaborative relationships with local Indigenous communities.
About TeckAs one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal, as well as investments in energy assets. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
Investor Contact:Fraser PhillipsSenior Vice President, Investor Relations and Strategic Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris Stannell Public Relations Manager604.699.4368chris.stannell@teck.com
International Paper Company IP declared that it intends to evaluate strategic alternatives for the possible sale of 50% shareholding interest in the Ilim Group Joint venture (JV) in Russia amid the invasion of Ukraine.The company stated that it has no intention to suspend operations or any initiation of liquidation or bankruptcy proceedings related to Ilim Group.Several companies have been winding up business operations in Russia. Recently, the U.S. President called for an elimination of normal trade relations with Russia, enabling new tariffs to be imposed on Russian imports in response to the Ukraine invasion. The company is donating $0.8 million to support Red Cross and Global Foodbanking Network Ukraine Relief efforts to aid refugees.In 2007, International Paper entered into an agreement with Ilim Holding S.A and formed a 50/50 JV, Ilim Group, which is Russia’s largest integrated pulp and paper manufacturer. Ilim has the three largest pulp and paper mills and two modern corrugated box plants in the European and Siberian regions of Russia. It is also the largest foreign-domestic alliance in the country’s forestry products sector. The company’s total annual volume of pulp and paper production exceeds 3 million tons. International Paper mostly exports pulp products to China through the Ilim JV. In 2021, the company generated equity earnings of $311 million from Ilim.International Paper will gain from the solid demand environment for corrugated packaging and pulp. The company is also witnessing strong demand driven by processed food, beverage, proteins, chemicals, paper tissue and towel. It projects EBITDA to be $3.1-$3.4 billion in 2022 compared with $2.6 billion in 2021. The company expects gross benefits to be $200-$225 million stemming from Building a Better IP initiatives.International Paper continually evaluates its operations for improvement opportunities by focusing on its core businesses, realigning capacity to operate fewer facilities with the same revenue capability, closing high-cost facilities and trimming costs. The company has strategically offloaded businesses in China to focus more on its U.S. operations. It continues to assess disciplined and selective M&A opportunities, particularly in packaging businesses in North America and Europe.Last October, International Paper completed its spin-off of the Printing Papers segment into a standalone, publicly-traded company, Sylvamo SLVM. The company retained up to 19.9% of the shares of the new company, with the intent to monetize its investment and provide additional proceeds to the company within one year.Recently, Sylvamo declared that it has started an orderly suspension of operations in Russia amid the ongoing war. SLVM will continue to measure several options for its operations in Russia, which might include a sale or exit.
Price Performance
International Paper’s shares have fallen 17.7% in the past year compared with the industry’s loss of 8.7%.
Zacks Investment Research
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
International Paper currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space include Teck Resources TECK and Cabot Corporation CBT, both carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Teck Resources has a projected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for TECK's current-year earnings has been revised upward by 33% in the past 60 days.Teck Resources beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13%. TECK’s shares have surged around 95% in a year.Cabot has a projected earnings growth rate of 15.5% for fiscal 2022. The Zacks Consensus Estimate for CBT’s fiscal 2022 earnings has been revised upward by 8% in the past 60 days.Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 21.6%. CBT has rallied around 49% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Paper Company (IP) : Free Stock Analysis Report Cabot Corporation (CBT) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Sylvamo Corporation (SLVM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Alpha Metallurgical Resources (AMR). AMR is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 3.29, while its industry has an average P/E of 9.30. AMR's Forward P/E has been as high as 1,470.53 and as low as -1,324.11, with a median of 6.35, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMR has a P/S ratio of 1.09. This compares to its industry's average P/S of 2.49.
Another great Mining – Miscellaneous stock you could consider is Teck Resources (TECK), which is a # 2 (Buy) stock with a Value Score of A.
Teck Resources is trading at a forward earnings multiple of 7.96 at the moment, with a PEG ratio of 0.21. This compares to its industry's average P/E of 9.30 and average PEG ratio of 1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alpha Metallurgical Resources, Inc. (AMR) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here.
Investors worried about the twin threats of inflation and armed conflict on their portfolio should not ignore income as a decent yield can help shore up returns during periods of market volatility.
Jason Hollands, managing director of DIY investing platform Bestinvest, said: "The income on an investment is generally the more reliable – though not guaranteed – component of overall returns, and adds valuable ballast to a portfolio through thick and thin.
"But it can prove especially reassuring during times of volatility."
Here are Hollands' five global fund ideas for income seekers to consider for their 2021/22 ISA.
Redwheel UK Equity Income
This fund – managed by boutique Redwheel (formerly RWC Partners) has a ‘value’ approach of targeting cheap stocks which are typically larger companies. Its holdings include value stalwarts Legal & General (LGEN.L) and Dettol maker Reckitt Benckiser (RKT.L). Another more glamorous stock is Revolution Beauty Group (REVB.L) which produces vegan lipsticks and skincare products.
Revolution Beauty Group performance over the past six months. Chart: Yahoo Finance UK
Evenlode Global Income
This fund invests in a concentrated portfolio of 36 stocks that the managers have targeted because they provide a high return on capital and generate strong free cashflow.
Read more: Five ways for investors to make the most out of capital gains tax exemptions
These are typically larger companies and the managers tend to hold them for the long-term. Unlike most global funds which can look more like US funds when you look below the bonnet, Evenlode Global Income is 38% invested in the US, holds a similar amount in Europe and has 21% in the UK. Current holdings include US consumer firm Proctor & Gamble (PG), which owns brands ranging from Pampers to Old Spice, and Swiss pharmaceutical giant Roche (RHHBY). It favours companies delivering sustainable real dividend growth rather than focusing purely on high yielders.
Swiss pharmaceutical giant Roche is known to provide sustainable dividend growth. Chart: Yahoo Finance UK
BlackRock Continental European Income
As well as a high yield this fund target dividend growth and long-term outperformance, and since launch have delivered all three. Its holdings include Danish pharmaceutical firm Novo Nordisk (NVO) and Italian energy group Enel (ENEL.MI). The fund stands comparison not just with the top income funds, but those in the whole European sector.
The fund has been managed since launch in 2011 by Andreas Zoellinger, who has spent almost his entire career at BlackRock. In 2021, Brian Hall joined as co-manager.
Jupiter Japan Income
This is a high-yielding Japan fund that aims to provide long-term capital and dividend growth. It currently yields 2.24%. Japan has historically been a low-yielding market but in recent years reforms have encouraged companies to become more shareholder friendly, with dividend payouts more commonplace.
The Jupiter Japan Income fund invests predominantly in Japanese equities, but does have the freedom to invest 30% of the fund outside of Japan or in other funds. The investment process focuses on finding companies with the ability and willingness to grow dividends.
The fund managers have stressed they do not aim to maximise yield but rather are willing to invest in high-growth areas as long as they offer some yield. Recent purchases included Roland (7944.T) (high-yield with some growth), Tokyo Electron (TOELY) (high-growth with some yield) and Aruhi (7198.T) (high-growth with high-yield).
Chipmaking giant Tokyo Electron has been targeted by investors betting on a semiconductor boom. Chart: Yahoo Finance UK
Read more: European Central Bank leaves interest rates unchanged
This fund has provided consistent outperformance relative to other Japanese higher income funds. Since inception it has outperformed the MSCI Japan index 87% of the time.
Schroder Oriental Income
This investment trust, managed by Richard Sennitt, has delivered a growing dividend every year since it launched in 2005. It is currently yielding 4%, with distributions paid quarterly. While it predominantly invests in equities, it also has the flexibility to invest in bonds and preference shares.
The portfolio invests across both developed and emerging Asia, excluding Japan, with the largest country exposures being Taiwan (25%), Australia (17%), Singapore (15%) and Hong Kong (13%). Key sector themes include technology (30%), financials (26%) and real estate (18%). Notable holdings include Taiwan Semiconductor Manufacturing Co. (TSM) (10.2%), Samsung Electronics (SMSN.IL) (7.8%) and Australian mining giant BHP Group (BHP) (4.9%).
Watch: What are SPACS?
Wheaton Precious Metals Corp. WPM reported adjusted earnings per share (EPS) of 29 cents in fourth-quarter 2021, missing the Zacks Consensus Estimate of 30 cents. The bottom line declined 12% year over year.The company generated revenues of $278 million during the reported quarter, down 3% on a year-over-year basis. The downside was caused by a 5% decline in the average realized gold equivalent price, partly offset by a 2% increase in the number of Gold Equivalent Ounces (GEOs) sold. The top line also missed the Zacks Consensus Estimate of $285 million.Wheaton’s gold production was 88,321 ounces, down from the prior-year quarter’s 92,039 ounces. Attributable silver production declined 2.4% year over year to 6,356 ounces and palladium production declined 17% to 4,733 ounces. The company sold 158,864 GEOs during the December-end quarter, up 2% from the prior-year quarter’s 155,665 GEOs.
Wheaton Precious Metals Corp. Price, Consensus and EPS SurpriseWheaton Precious Metals Corp. Price, Consensus and EPS Surprise
Wheaton Precious Metals Corp. price-consensus-eps-surprise-chart | Wheaton Precious Metals Corp. Quote
Prices
In fourth-quarter 2021, the average realized gold price was $1,798 per ounce. The figure was 4.5% lower than the year-ago quarter’s figure. Silver prices averaged $23.36 per ounce in the reported quarter, down 5.5% year on year. Palladium prices fell 18.3% year over year to $1,918 per ounce.
Financial Position
The company had $226 million of cash in hand at the end of 2021 compared with $193 million at the 2020-end. It recorded an operating cash flow of $845 million in 2021 compared with $765 million in 2020. The company fully paid a revolving credit facility of $2 billion.During the fourth quarter, the company announced a quarterly dividend of 15 cents per share, reflecting an increase of 25% from the year-ago quarter’s levels.
Business Update
On Dec 14, Wheaton entered into a new precious metals purchase agreement (PMPA) with Artemis Gold Inc. to acquire silver production from Blackwater Gold Project. The company also entered into an agreement with New Gold Inc. NGD to acquire the existing gold stream from the project. Wheaton will pay New Gold an upfront consideration of $300 million after the gold stream deal’s closure. The company will pay Artemis a total cash consideration of $141 million, payable in four equal installments during the construction of the Blackwater Project.On Dec 22, Wheaton entered into a PMPA with Generation Mining Limited in relation to acquiring gold and platinum production from the Marathon Project.On Jan 17, 2022, Wheaton entered into another PMPA with Alliance Metals International, a subsidiary of Adventus Mining Corporation, to acquire gold and silver streams from the Adventus Curipamba Project.
2021 Performance
Wheaton reported an adjusted EPS of $1.32 in 2021 compared with $1.12 reported in the prior year. Earnings meet the Zacks Consensus Estimate.Sales were up 9.6% year over year to a record $1.20 billion. The top line missed the Zacks Consensus Estimate of $1.21 billion.
Guidance
Wheaton’s attributable production is estimated between 700,000 GEOs and 760,000 GEOs for the current year. Gold production is expected in the band of 350,000-380,000 ounces. Silver production is projected between 23.0 million ounces and 25.0 million ounces, while production of other metals is anticipated in the band of 44,000-48,000 GEOs.
Price Performance
Shares of Wheaton have gained 26.1% in the past year compared with the industry’s growth of 13.1%.
Zacks Investment Research
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Wheaton currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the basic materials space include Teck Resources TECK and Cabot Corporation CBT, both sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Teck Resources has a projected earnings growth rate of 26.1% for the current year. The Zacks Consensus Estimate for TECK's current year earnings has been revised upward by 33% in the past 60 days.Teck Resources beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 13%. TECK’s shares have surged around 95% in a year.Cabot has a projected earnings growth rate of 15.5% for fiscal 2022. The Zacks Consensus Estimate for CBT’s fiscal 2022 earnings has been revised upward by 8% in the past 60 days.Cabot beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 21.6%. CBT has rallied around 49% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cabot Corporation (CBT) : Free Stock Analysis Report New Gold Inc. (NGD) : Free Stock Analysis Report Teck Resources Ltd (TECK) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Teck Resources Ltd (TECK), which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Teck Resources Ltd currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if TECK is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For TECK, shares are up 3.8% over the past week while the Zacks Mining – Miscellaneous industry is up 2.84% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 13.57% compares favorably with the industry's 7.56% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics — such as performance over the past three months or year — can be useful as well. Over the past quarter, shares of Teck Resources Ltd have risen 33.07%, and are up 73.81% in the last year. On the other hand, the S&P 500 has only moved -4.17% and 11.92%, respectively.
Investors should also take note of TECK's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, TECK is averaging 5,281,146 shares for the last 20 days.
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TECK.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost TECK's consensus estimate, increasing from $4.28 to $5.56 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that TECK is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Teck Resources Ltd on your short list.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report To read this article on Zacks.com click here.
Investors interested in stocks from the Mining – Miscellaneous sector have probably already heard of Teck Resources Ltd (TECK) and Wheaton Precious Metals Corp. (WPM). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Teck Resources Ltd has a Zacks Rank of #1 (Strong Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TECK has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TECK currently has a forward P/E ratio of 6.64, while WPM has a forward P/E of 32.73. We also note that TECK has a PEG ratio of 0.17. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WPM currently has a PEG ratio of 6.55.
Another notable valuation metric for TECK is its P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WPM has a P/B of 3.44.
These are just a few of the metrics contributing to TECK's Value grade of B and WPM's Value grade of D.
TECK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TECK is likely the superior value option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report To read this article on Zacks.com click here.
In this video clip from “The Rank,” recorded on Feb. 14, Motley Fool contributors Matthew Frankel, CFP®, Jason Hall, and Tyler Crowe discuss Teck Resources (NYSE: TECK), a diversified natural resources company that focuses on coal, zinc, energy, and — importantly — copper. Here’s why Teck may be a stock to consider if you can keep up with the cyclical nature of the commodities industry.
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