Yahoo Finance Is Teck Resources (TECK) Stock Undervalued 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Teck Resources (TECK) is a stock many investors are watching right now. TECK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.66, while its industry has an average P/E of 8.33. Over the past 52 weeks, TECK's Forward P/E has been as high as 8.96 and as low as 4.16, with a median of 6.48.
We should also highlight that TECK has a P/B ratio of 0.85. 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 stock's P/B looks solid versus its industry's average P/B of 0.97. TECK's P/B has been as high as 1.23 and as low as 0.65, with a median of 0.86, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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 1.07. This compares to its industry's average P/S of 1.62.
Finally, our model also underscores that TECK has a P/CF ratio of 3.17. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.99. Over the past 52 weeks, TECK's P/CF has been as high as 8.13 and as low as 2.44, with a median of 4.87.
Investors could also keep in mind Taseko Mines Limited (TGB), an Mining - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Taseko Mines Limited also has a P/B ratio of 1.14 compared to its industry's price-to-book ratio of 0.97. Over the past year, its P/B ratio has been as high as 2.42, as low as 0.91, with a median of 1.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Teck Resources and Taseko Mines Limited are likely undervalued currently. And when considering the strength of its earnings outlook, TECK and TGB sticks out as one of the market's strongest value stocks.
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Teck Resources Ltd (TECK) : Free Stock Analysis Report
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