Are Investors Undervaluing Teck Resources Ltd (TECK) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Teck Resources Ltd (TECK). TECK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that TECK has a P/B ratio of 0.75. 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. This stock's P/B looks solid versus its industry's average P/B of 1.09. TECK's P/B has been as high as 0.84 and as low as 0.40, with a median of 0.67, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TECK has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.35.

Finally, our model also underscores that TECK has a P/CF ratio of 9.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TECK's current P/CF looks attractive when compared to its industry's average P/CF of 13.02. Within the past 12 months, TECK's P/CF has been as high as 26.17 and as low as -25.05, with a median of 10.06.

These are only a few of the key metrics included in Teck Resources Ltd's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TECK looks like an impressive value stock at the moment.

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Teck Resources Ltd (TECK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

Are Investors Undervaluing Teck Resources Ltd (TECK) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Teck Resources Ltd (TECK). TECK is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that TECK has a P/B ratio of 0.75. 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. This stock's P/B looks solid versus its industry's average P/B of 1.09. TECK's P/B has been as high as 0.84 and as low as 0.40, with a median of 0.67, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TECK has a P/S ratio of 1.7. This compares to its industry's average P/S of 2.35.

Finally, our model also underscores that TECK has a P/CF ratio of 9.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TECK's current P/CF looks attractive when compared to its industry's average P/CF of 13.02. Within the past 12 months, TECK's P/CF has been as high as 26.17 and as low as -25.05, with a median of 10.06.

These are only a few of the key metrics included in Teck Resources Ltd's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TECK looks 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
 
Teck Resources Ltd (TECK) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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