5 Best Copper Stocks to Buy Now

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 46

Teck Resources Limited (NYSE:TECK) is a Canadian diversified natural resources company. The company is engaged in mineral and mining development for coal, copper, and zinc. In addition, the company holds a small market share in lead, silver, gold, molybdenum, germanium, indium, and cadmium.

Teck Resources Limited (NYSE:TECK) is one of the best copper stocks because of the primary copper asset, Quebrada Blanca Mill 2 in Chile. Currently, 23% of the revenues of the company are generated from copper and are expected to reach 34% when the QB2 mill reaches its full potential in 2026. The Teck Resources Limited (NYSE:TECK)’s management is planning to open another mill which is expected to double the company’s copper output to 861kt copper equivalent and cash costs are expected to reduce significantly according to the company’s investor presentation.

Teck Resources Limited (NYSE:TECK) also focuses on shareholder returns through stock repurchases and dividends. The company has a 1.25% dividend yield with a current TTM payout of $0.38 as of November 3. Furthermore, the company announced a share repurchase program of $1 billion in April and July, out of which $800 million worth of shares still remain.

On November 3, RBC Capital analyst Sam Crittenden reaffirmed a Buy rating on Teck Resources Limited (NYSE:TECK) and lowered the price target to $52 from $60.

Here is what Greenlight Capital had to say about Teck Resources Limited (NYSE:TECK) in its Q2 2022 investor letter:

“Finally, Teck Resources (NYSE:TECK). The shares ended the quarter at $30.57. This is about 85% of book value and less than 4x consensus earnings. The company recently began buying back its shares. When the CEO was asked on the April 27th quarterly call what the plans were for playing his ‘really strong hand of cards here,’ he responded with, ‘I’d like to buy the whole company back myself.’”