Teck Resources Ltd (USA) (NYSE:TCK) is having a strong day in the market today, and for good reason. Several analysts decided to weigh in on the stock yesterday. Today, we’ll talk about what the analysts had to offer, how the stock reacted to the news, and what we can expect to see from TCK ahead.
Analysts Like What They See With TCK
As mentioned above, Teck Resources Ltd (USA) (NYSE:TCK) is having an incredibly strong day in the market today because several analysts have decided to weigh in on the stock. Of course, as you could imagine, the notes were positive. All three analysts have upgraded the stock. Here’s what we saw:
– Credit Suisse Group AG – Researchers at Credit Suisse Group AG started the trend yesterday morning. In the wee hours of the day, the analysts at Credit Suisse upgraded TCK. The rating has been moved from “neutral” to “outperform”.
– Bank of America Corp – Another big analyst weighed in early yesterday morning. That was Bank of America. The bank decided to begin coverage on the stock, rating it a “buy”.
– RBC Capital Markets – Finally, analysts at RBC Capital Markets also decided to throw their two cents into the fray. In their note, RBC Capital Markets upgraded TCK from a “sector perform” rating to an “outperform” rating.
How The Stock Reacted To The News
When we get started in the market, one of the first things that investors seem to notice is that the news causes movement. Positive news will lead to gains while negative news leads to losses. In the case of Teck Resources, the news was overwhelmingly positive. While one analyst upgrade will make investors happy, 3 upgrades in one day is downright exciting. As a result, we’re seeing gains in the value of TCK today. The stock is trading up by 3.65% this morning after a 3.8% gain yesterday.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from Teck Resources Ltd (USA) (NYSE:TCK). While analysts are obviously bullish, I never advise blindly following in the footsteps of these guys. The truth is that they make mistakes too. With that said, the positive side is simple. The stock has been on the uptrend since June of 2016, even in the face of a struggling commodities market. As they continue to produce, more and more investors are getting excited. However, with the risk of a Fed rate hike just around the corner, this could be a tough play to make. A rate hike could send commodity prices further down, leading to declines for TCK. So, while this is a strong play in the short run, the medium- to long-term view is a bit skewed by the idea that the Fed could raise its rate in December.
Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!