Written by Amy Legate-Wolfe at The Motley Fool Canada
Sometimes, it’s not about having thousands to invest; it’s about making the most of what you’ve got. And right now, if you’re sitting on $200 and wondering where to put it, Teck Resources (TSX:TECK.B) stands out as one of the smartest picks on the TSX. This stock isn’t just about mining; it’s about the future of global infrastructure, clean energy, and resilient Canadian industry.
About Teck
Teck is one of Canada’s largest diversified resource companies. Its focus is on copper, zinc, steelmaking coal, and energy. But it’s copper that has the market’s attention. With the global shift toward electrification, copper is in high demand. It’s a key component in electric vehicles (EVs), renewable energy systems, and just about every infrastructure project that aims to be more sustainable. Teck is well positioned in this space, and that gives it a unique advantage over more traditional mining stocks.
As of writing, Teck’s had a decent rebound from the lows earlier this year, but it’s still down more than 25% from its 52-week high of $74.15. This gap between its current price and historical peak is where the opportunity lies. Analysts currently have a 12-month average price target of $71.94. That would mean a potential upside of nearly 36%. With $200, you could pick up almost four shares and still have some change left over. That’s a small but meaningful stake in a company with big potential.
Into earnings
Looking at the most recent earnings, Teck had a strong start to 2025. In the first quarter, it reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $927 million, which was more than double what it posted during the same period last year. Adjusted profit came in at $303 million, or $0.60 per share. This growth was largely driven by stronger commodity prices, especially copper and zinc, as well as higher production volumes.
Teck’s copper output was particularly strong, increasing 7% year over year to 106,100 tonnes. Its Quebrada Blanca mine in Chile was a big contributor to that, producing 42,300 tonnes despite dealing with a national power outage and some rough weather. The ability to meet or exceed production targets under difficult conditions speaks volumes about Teck’s operations and management.
More to come
But the story doesn’t end with production. Teck has been returning capital to shareholders aggressively. Between January and April 2025, it bought back $505 million worth of shares. That’s part of a broader $3.25 billion buyback plan, of which $1.75 billion has now been completed. In an uncertain market, share buybacks can signal that management believes the stock is undervalued and wants to reward long-term holders.
Teck’s future looks even more promising when you consider its strategic direction. The Canadian stock continues to divest from its steelmaking coal business, moving to become more focused on metals that are critical to a low-carbon economy. This shift isn’t just good for optics; it aligns Teck with some of the most powerful investment themes of the decade. Copper and zinc are already seeing surging demand, and that demand is expected to continue climbing. By focusing on these areas, Teck is putting itself in the right place at the right time.
Bottom line
So, what does all this mean for a $200 investment? It means you’re not just buying a mining stock; you’re buying a piece of the global energy transition. You’re getting exposure to some of the most important materials of the next decade. You’re also getting a Canadian stock that has proven its ability to grow earnings, return value to shareholders, and adapt to changing markets.
And let’s be honest: part of smart investing is knowing when something good is trading at a discount. Teck may not stay this cheap for long. The market has already started to catch on, but there’s still time to buy in before it pushes higher. For those looking to start small but think big, Teck Resources might just be the smartest Canadian stock to pick up with $200 right now.
The post The Smartest Canadian Stock to Buy Right Now With $200 appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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