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
) 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 $87.3 million.
- TCK has traded 103,572 shares today.
- TCK is up 3.1% today.
- TCK was down 5.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in TCK with the Ticky from Trade-Ideas. See the FREE profile for TCK NOW at Trade-Ideas
More details on TCK:
Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in the Americas, Asia Pacific, Europe, and Africa. The stock currently has a dividend yield of 3.2%. TCK has a PE ratio of 24.8. Currently there are 10 analysts that rate Teck Resources a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Teck Resources has been 2.7 million shares per day over the past 30 days. Teck has a market cap of $15.0 billion and is part of the basic materials sector and metals & mining industry. Shares are down 31% year to date as of the close of trading on Wednesday.
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, reasonable valuation levels and expanding profit margins. 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 weak operating cash flow.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TCK has a quick ratio of 2.48, which demonstrates the ability of the company to cover short-term liquidity needs.
- 40.47% is the gross profit margin for TECK RESOURCES LTD which we consider to be strong. Regardless of TCK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TCK's net profit margin of 6.64% compares favorably to the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, TECK RESOURCES LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- TECK RESOURCES LTD has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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 $1.60 versus $4.51 in the prior year.
- You can view the full Teck Resources Ratings Report.