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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $72.5 million.
  • TCK has traded 515,372 shares today.
  • TCK is trading at 2.80 times the normal volume for the stock at this time of day.
  • TCK is trading at a new high 3.03% 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:

TheStreet Recommends

Teck Resources Limited explores for, develops, and produces natural resources in the Americas, Asia Pacific, Europe, and Africa. Its principal products include copper, including copper concentrates and cathode copper; steelmaking coal; and refined zinc and zinc concentrates. The stock currently has a dividend yield of 7.1%. TCK has a PE ratio of 15.8. Currently there are 4 analysts that rate Teck Resources a buy, 2 analysts rate it a sell, and 7 rate it a hold.

The average volume for Teck Resources has been 3.8 million shares per day over the past 30 days. Teck has a market cap of $6.3 billion and is part of the basic materials sector and metals & mining industry. Shares are down 52.5% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Teck Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.

Highlights from the ratings report include:

  • Despite currently having a low debt-to-equity ratio of 0.44, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that TCK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.84 is high and demonstrates strong liquidity.
  • TCK, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 10.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 68.5% when compared to the same quarter one year ago, falling from $267.00 million to $84.00 million.
  • The gross profit margin for TECK RESOURCES LTD is currently lower than what is desirable, coming in at 33.33%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.73% significantly trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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