Top 5 Zinc Stocks Picked By Hedge Funds for 2022

2. Teck Resources Ltd. (NYSE:TECK)

Number of Hedge Fund Holdings: 46

Teck Resources Ltd. (NYSE:TECK) is a diversified natural resources company which is engaged in mining and mineral development, including coal for the steelmaking industry, copper, zinc, and energy. In 2021, the company produced more than 800,000 tonnes of zinc in concentrate and 420,000 tonnes of refined zinc. It is currently the world’s third largest producer of mined zinc. In Q2 2022, Teck Resources (NYSE:TECK) posted an EPS of $2.4, beating estimates of $2.26 by $0.15. The company is a dividend payer, with an annual dividend yield of 1.15% and a quarterly dividend amount of $0.09 per share.

On October 16, Stifel analyst Alex Terentiew raised the price target on Teck Resources (NYSE:TECK) to $44.12 from $42.67, maintaining a Buy rating on the shares. According to the analyst, the company is delivering stellar profits currently and though profits are expected to decline as the fears of a recession loom large, earnings are likely to maintain at about $5 next year. Copper production is set to rise and the weakening Canadian currency will lower costs. Moreover, the government incentives may keep steel and coal prices more favorable than some expect. The declining cap-ex, rising production, depleted share price of $32.99 as of October 20, and further tailwinds from energy and zinc, have all contributed to the analyst’s Buy rating on Teck Resources (NYSE:TECK).