Teck Resources Ltd (TECK) shares rallied 5.4% in the last trading session to close at $34.18. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 20.6% gain over the past four weeks.
Higher copper prices have led to a surge in the share price of Teck Resources. Copper futures for March delivery have gone up to $4.5 per pound — levels last seen in October 2021. This was driven by a pullback in the U.S dollar and expectations of stronger demand from China while inventories held at the London Metals Exchange are at multi-year lows. Further, reports of Teck Resources receiving a notice of a potential strike at its Highland Valley Copper mine in British Columbia have triggered supply concerns for the metal.
Meanwhile, Goldman has raised the 12-month target price of copper to $12,000 per ton (around $5.4 per pound).
This company is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +525.7%. Revenues are expected to be $3.77 billion, up 92% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Teck Resources Ltd, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TECK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see
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