Trade-Ideas LLC identified

Teck Resources

(

TCK

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Teck Resources as such a stock due to the following factors:

  • TCK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $100.8 million.
  • TCK has traded 1.2 million shares today.
  • TCK is trading at 2.95 times the normal volume for the stock at this time of day.
  • TCK is trading at a new high 6.05% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TCK:

Teck Resources Limited explores, develops, and produces natural resources in the Americas, the Asia Pacific, and Europe. The company's principal products comprise steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; and lead concentrates. The stock currently has a dividend yield of 0.6%. Currently there are 2 analysts that rate Teck Resources a buy, 5 analysts rate it a sell, and 6 rate it a hold.

The average volume for Teck Resources has been 9.0 million shares per day over the past 30 days. Teck has a market cap of $8.1 billion and is part of the basic materials sector and metals & mining industry. Shares are up 272.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Teck Resources as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TECK RESOURCES LTD underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The gross profit margin for TECK RESOURCES LTD is currently lower than what is desirable, coming in at 27.33%. It has decreased from the same quarter the previous year.
  • Net operating cash flow has remained constant at $373.00 million with no significant change when compared to the same quarter last year. Despite stable cash flow, TECK RESOURCES LTD's cash flow growth rate is still lower than the industry average growth rate of 15.77%.
  • TECK RESOURCES LTD has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, TECK RESOURCES LTD swung to a loss, reporting -$4.30 versus $0.63 in the prior year.
  • Despite the weak revenue results, TCK has outperformed against the industry average of 45.9%. Since the same quarter one year prior, revenues fell by 16.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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