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.
Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) 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 $45.8 million.
- TCK has traded 55,785 shares today.
- TCK is up 4% today.
- TCK was down 5.1% yesterday.
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More details on TCK:
Teck Resources Limited explores, develops, and produces natural resources in the Americas, the 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 2.9%. TCK has a PE ratio of 17. Currently there are 4 analysts that rate Teck Resources a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Teck Resources has been 4.6 million shares per day over the past 30 days. Teck has a market cap of $4.7 billion and is part of the basic materials sector and metals & mining industry. Shares are down 41.6% year-to-date as of the close of trading on Friday.
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rates Teck Resources as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- Despite the weak revenue results, TCK has outperformed against the industry average of 17.4%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Looking at the price performance of TCK's shares over the past 12 months, there is not much good news to report: the stock is down 68.25%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- TECK RESOURCES LTD's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, TECK RESOURCES LTD reported lower earnings of $0.63 versus $1.66 in the prior year.
- You can view the full Teck Resources Ratings Report.