13 Best Commodity Stocks To Buy According to Analysts

4. Teck Resources Limited (NYSE:TECK)

Upside Potential: 41.78%

Teck Resources Limited (NYSE:TECK) is a base metals miner that operates in Chile, Peru, the United States, and Canada for copper and zinc. Following the sale of its metallurgical coal division, copper now accounts for the majority of its EBITDA contribution, with zinc following. Teck ranks third among zinc miners. China is the largest customer of everything Teck Resources extracts from the ground, including copper, zinc, and lead.

The company’s overall copper production is expected to expand by around 75% as a result of its significant new copper mine in Chile at the majority-owned Quebrada Blanca 2, which it operates together with Sumitomo. Rebalancing its portfolio to include low-carbon metals like copper is Teck’s goal, along with several other copper growth prospects. Early in 2023, it sold its oil sands company, and in mid-2024, it sold its coal company.

It is significantly boosting its production of copper in order to capitalize on the growing demand brought about by trends like electrification and decarbonization.

Based on an all-time high in copper pricing and output, the mining company reported a strong second quarter of 2024 with a record $1.7 billion in Adjusted EBITDA. The company is shifting its focus to energy transition metals, specifically copper, after selling its steelmaking coal business strategically for US$7.3 billion. The sale proceeds will be utilized to reduce debt, encourage the growth of copper, and give shareholders a sizable cash return.

Teck Resources Limited (NYSE:TECK) was upgraded from Neutral to Buy by UBS analyst Myles Allsop, who raised the price target from C$76 to C$78. Following the consolidation of commodity prices, the analyst tells investors in a research note that the stock’s risk/reward ratio has improved.

It is one of the Best Commodity Stocks To Buy since it has received a “strong buy” recommendation from 7 analysts. It has an average Wall Street analyst price target of $62.71, indicating an upside potential of 41.78% from the company’s current price.