8 Best TSX Stocks To Invest In Now

1. Teck Resources (NYSE:TECK)  

Number of Hedge Fund Investors: 69  

Teck Resources (NYSE:TECK) is one of Canada’s largest integrated natural resources groups. It produces copper from its four mines in Canada, Chile, and Peru. The company also produces zinc from its Alaska operating mine and coal from its mines in British Columbia.

Copper is an essential commodity in a wide range of innovations and technologies, including electric vehicles, solar panels, and wind turbines. According to McKinsey, the world’s increasing reliance on electrification is expected to drive up annual copper demand to 36.6 million tonnes by 2031, a significant increase from the current demand of around 25 million tonnes. However, copper supply will only reach 30.1 million tonnes, leaving a substantial gap of 6.5 million tonnes.

Furthermore, a “net-zero emissions” path would require an additional 54% of copper by 2030, highlighting the need for significant investment in copper production to meet the world’s growing demand.

Teck Resources’ (NYSE:TECK) Quebrada Blanca operations are stabilising, and production is ramping up steadily. This will drive up revenue and profitability for the company. Furthermore, the company’s commitment to return 30-100% of available cash flow to shareholders.

The world is facing a severe copper supply deficit, which is expected to persist beyond 2030. This will drive up copper prices and benefit Teck Resources (NYSE:TECK) due to its exposure to the rapidly growing demand for copper in the clean energy transition. In the second quarter, the company’s stock was held by 69 hedge funds with stakes worth $1.95 billion.

While we acknowledge the potential of Teck Resources (NYSE:TECK) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TECK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.