With concerns building over the Federal Reserve and their interest rate policy to close out the year, some investors are starting to worry about the health of the materials market. After all, a stronger dollar would hamper commodity prices, and many stocks have begun to see higher volatility levels thanks to these fears.
However, investors shouldn’t throw out all stocks in this industry due to these concerns, as there are still several gems out there. This includes the broader miscellaneous mining segment, which actually has a top 10% industry rank right now and has plenty of promising names that could be solid investments no matter what the Fed does in the next few months.
One to keep an eye on in particular from this group is definitely Teck Resources (TCK – Free Report) . This roughly $10 billion Canadian company mines various products such as zinc, gold, copper, and coal and it has been surging for much of 2016. In fact, the company has jumped by over 160% so far in 2016, and with an ‘A’ momentum grade, there is plenty of reason to think it can still march higher. But momentum isn’t the only reason to like TCK these days, as it has several other strong fundamental factors backing up its near term potential.
TCK in Focus
A crucial aspect to consider when evaluating TCK stock is its most recent earnings estimate revisions. Analysts following the stock have been universally raising their earnings estimates for the full year and the next year period, while current quarter estimates are also on the rise.
But it isn’t just the agreement among analysts, as the magnitude of these revisions has also been strong. This is particularly true when you look to the current year and next year consensus estimates, which have seen astounding growth in the past few weeks. The current full year estimate has jumped by over 60% in the past two months, while the following year has surged by over 70% as well.
But before you worry about TCK living up to these juiced-estimates, consider its recent track record in earnings season. The company hasn’t missed estimates in any of its last five quarters, while it has, on average, more than doubled the consensus estimate at earnings season over the past year.
No wonder this stock currently has a Zacks Rank #1 (Strong Buy), and why it looks like it has plenty of room to run higher.
The Fed is definitely a concern for many investors in the materials market, and especially after the recent bull run. However, there are still plenty of companies in the segment with promising fundamentals and an ability to deliver at earnings season.
These companies, such as Teck Resources, deserve closer attention to close out 2016 and could be great choices for investors seeking stocks that have the potential to not only grow earnings, but stock prices as well.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today’s Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here >>.