Teck Resources is a buy: Cramer’s Lighting Round.
Jim Cramer, host of CNBC’s Mad Money, recently gave his opinion on Teck Resources Ltd. (TECK). In a “Lightning Round” segment of the show, Cramer was asked if Teck was a buy. Cramer responded positively, saying that he would buy the stock.
Teck Resources is a Canadian mining and metals company that produces copper, zinc, and other industrial products. It is the largest producer of metallurgical coal in North America and has operations in Canada, the United States, Chile, and Peru. The company has been struggling in recent years due to low commodity prices, but Cramer believes that the stock is a buy.
Cramer believes that Teck’s stock is a good buy due to its low valuation and potential for growth. The company’s stock is currently trading at a price-to-earnings ratio of 6.5, which is significantly lower than the industry average of 15. This indicates that the stock is undervalued and could provide investors with a good return on their investment.
Additionally, Teck has been making investments in its operations, which could lead to increased production and higher profits. The company recently announced a $1.5 billion investment in its copper and zinc mines, which should lead to increased production and higher profits.
Finally, Teck has a strong balance sheet, which gives it the ability to weather any economic downturns. The company has a debt-to-equity ratio of 0.5, which is well below the industry average of 1.5. This indicates that Teck has a strong financial position and can withstand any economic shocks.
In conclusion, Cramer believes that Teck Resources is a good buy for investors looking for a stock with potential for growth and a strong balance sheet. The company’s low valuation and investments in its operations could lead to increased production and higher profits. Additionally, Teck’s strong balance sheet gives it the ability to weather any economic downturns.
News Source