Teck Resources (TCK) has been one of the best-performing companies in the metals and mining space (XME) in 2016. The stock has gained a whopping 556% YTD (year-to-date). Teck’s strong YTD performance dwarfed the modest gains registered by mining giants such as Rio Tinto (RIO) (TRQ) and BHP Billiton (BHP).
According to consensus estimates compiled by Thomson Reuters, Teck Resources has a mean one-year price target of 37.04 Canadian dollars (~$27.4). This represents an 8.0% upside over its December 23, 2016, closing price. Out of the 21 analysts surveyed by Thomson Reuters, five have rated the stock as a “strong buy,” while ten have rated it as a “buy.” Only one analyst has rated Teck Resources as a “sell,” while the remaining analysts have rated the stock as a “hold.”
Notably, Teck Resources’ 2016 price action has taken most analysts by surprise. In mid-April, out of the 23 analysts surveyed by Bloomberg, four rated the stock as a “buy,” while nine had “sell” ratings on the stock. The remaining ten analysts rated Teck Resources as a “hold.”
Teck Resources has traded above its consensus price target for most of 2016. Although analysts have regularly raised their price targets for the company, it’s continued to trade above its consensus price target.
Several factors aided Teck Resources’ 2016 price action. In the next part of this series, we’ll see how Teck managed to post such a spectacular performance this year.