TECK or FCX: Which Stock Analysts Prefer This Earnings Season



Earnings season

Both Freeport-McMoRan (FCX) and Teck Resources (TECK) are scheduled to release their 1Q17 earnings on April 25, 2017. While Freeport is now predominantly a copper producer, Teck Resources is a diversified miner, producing copper, zinc, and coking coal.

Teck Resources is also investing in an oil sands project in its joint venture with Suncor Energy (SU). With 1Q17 earnings just around the corner, let’s see how analysts are rating these companies.

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Price target

According to consensus estimates compiled by Thomson Reuters, Freeport-McMoRan has a mean one-year price target of $14.81, which is an 18.7% upside over its closing price on April 18, 2017. Teck Resources’ consensus price target implies a 25.2% upside over its April 18, 2017, closing price.

Looking at other miners, Glencore (GLNCY) and Southern Copper (SCCO) are trading 26.0% and 5.0% below their consensus price targets, respectively, based on their April 18, 2017, closing prices.


Analysts seem to favor Teck Resources over Freeport-McMoRan this year. Teck Resources has received a “buy” or equivalent rating from 79.0% of analysts polled by Thomson Reuters. In comparison, only 20.0% of analysts have rated Freeport-McMoRan a “buy” or equivalent. About 70.0% of analysts have recommended a “hold” for Freeport-McMoRan.

We should remember that some analysts cut Teck Resources’ price target after the company’s 4Q16 earnings release. However, analysts revised Freeport-McMoRan’s target price upward after its 4Q16 earnings call. You can read How Analysts Are Rating Copper Miners in 1Q17 to see how analysts changed their ratings for various companies after their 4Q16 earnings releases.

You can also visit Market Realist’s Copper page for ongoing updates on this industry.


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