5 Affordable Blue Chip Stocks To Buy Now

3. Teck Resources Ltd (NYSE:TECK)

Number of Hedge Fund Holders: 56

Share Price (as of June 13): $40.15

Teck Resources Ltd (NYSE:TECK) is a mining company which deals in the production and supply of gold, copper, lead, steelmaking coal, and silver, as well as other metals, chemicals and fertilizers. Rising commodity prices position the company very well heading into the future, and in the last 12 months it has gained 79.95% as of June 14.

Deutsche Bank analyst Abhi Agarwal on June 9 reiterated a ‘Buy’ rating on Teck Resources Ltd (NYSE:TECK) shares, and bumped the price target to $52 from $48. The analyst noted, after meeting with company management, that the company is on “is on the cusp of a major shift” as the Quebrada Blanca Phase 2 project, one of the world’s largest undeveloped copper resources, starts delivering which will drive an increase in free cash flow generation. He also sees the company’s portfolio shifting from being primarily a met-coal miner to a base metal miner by 2025, which should drive a re-rating of the stock.

Investors were eager on Teck Resources Ltd (NYSE:TECK) in the first quarter, where 56 hedge funds reported ownership of positions in the company, as compared to 40 hedge funds a quarter earlier. Its largest shareholder in the first quarter was Soroban Capital Partners, with a stake worth $495 million.

Teck Resources Ltd (NYSE:TECK) announced its Q1 earnings on April 27, and reported earnings per share of $2.31, exceeding estimates by $0.06. Quarterly revenue of $3.93 billion also outperformed market estimates by $16.1 million, and showed impressive year-on-year growth of 89.76%.