This mining company’s EPS estimates are rising. Six analysts have increased their forecasts in the past month, and they expect the company to post triple-digit growth this year.
Teck Resources (TECK)
From Blue Chip Growth
Teck Resources (TECK) returns to the Top 5 after rallying over 7% in the past week. Teck Resources is Canada’s largest diversified mining company, the third-largest producer of zinc concentrate and the second-largest seaborne exporter of steel-making coal. It is also a major producer of copper, gold, silver, cadmium and molybdenum, which are used in structural and stainless steel production.
As the operator of one of the world’s largest zinc mines, Teck Resources will continue to profit from increased infrastructure spending. The fact is that zinc is used in stainless steel, so prices will continue to rise in anticipation of an infrastructure build-out under the Trump administration.
Earnings per share are expected to surge 5,200% this quarter and 8,300% next quarter. Analysts have also been aggressively revising their earnings estimates higher through the end of next fiscal year, so Teck Resources will likely do even better. As an added bonus, TECK trades at just nine times forecasted earnings, and it has a modest dividend yield of 0.4%.
However, before you go loading up on TECK, I must reiterate that this is a very aggressive stock. In fact, it’s the most aggressive stock on the Buy List right now. That’s because, as a materials company, Teck Resource’s stunning earnings growth is tied to commodity prices. I’m very confident that zinc prices will continue to climb, but please keep this in mind as you buy the stock. Remember, you should allocate no more than 10% of your portfolio to our aggressive stocks. As part of a properly diversified portfolio, TECK has a lot to offer; add this Aggressive stock up to $24 per share.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, April 2017