1 Magnificent Canadian Stock Down 36% to Buy and Hold Forever

This top Canadian stock is turning to copper, and that could be huge for investors.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 1, 2025 4:00 pm EDT

| More on: TECK.B

When markets get jittery, solid companies often get dragged down alongside weaker ones. It’s frustrating, sure, but it also creates an opportunity. One great example is Teck Resources (TSX: TECK.B). Right now, Teck’s stock is down roughly 36% from its 52-week high of $74, hovering near $47. And that drop doesn’t reflect a broken business — far from it. What it does reflect is a chance for patient investors to pick up a magnificent Canadian stock at a discount and potentially hold it for decades.

analyze data — Image source: Getty Images

The stock

Teck Resources is a diversified natural resources company headquartered in Vancouver. It’s a big name in copper and zinc, and it produces steelmaking coal and has exposure to energy and industrial minerals. This diversity gives it a built-in buffer. If one commodity dips, another may hold firm or even surge. That flexibility is incredibly helpful in uncertain economic environments.

What really makes Teck stand out, though, is its focus on copper. Demand for copper continues to grow as the world shifts to cleaner energy and electrification. Solar, wind, and electric vehicles (EVs) all need a lot of copper. Teck is one of Canada’s largest producers, and it’s investing heavily in expanding that capacity through its QB2 project in Chile. QB2 is a game-changer for Teck. After years of development, the project is finally coming online. In the first quarter of 2025, Teck reported a 7% increase in copper production, thanks in part to QB2’s ramp-up. The Canadian stock expects copper output to reach between 490,000 and 565,000 tonnes this year. That positions Teck to be a key supplier of the copper the world is going to need a lot more of.

The numbers

Financially, Teck is in a solid place. In the first quarter (Q1) of 2025, the Canadian stock posted a net profit of $370 million from continuing operations. That’s a big turnaround from the same quarter in 2024 when it recorded a loss of $125 million. Adjusted earnings per share (EPS) came in at $0.60, reflecting better operational efficiency and more favourable pricing conditions. And this isn’t just a one-off improvement. Teck has been building up its financial strength. As of the end of the first quarter, it had a net cash position of $764 million and total liquidity of around $10 billion. That gives it plenty of wiggle room to weather any short-term commodity dips or global uncertainty and still reinvest in growth.

Teck is also putting money back into shareholders’ hands. It returned $443 million in Q1 alone through dividends and share buybacks. The dividend yield isn’t massive at around 1.07% at the time of writing, but the company is clearly committed to rewarding investors while also keeping its balance sheet in good shape. And with the potential for earnings growth from rising copper output, there’s room for that dividend to grow.

More to come

Another reason to like Teck? It’s not just a play on traditional mining. The Canadian stock is also involved in producing critical minerals like germanium and indium at its Trail Operations in British Columbia. These minerals are used in everything from solar panels to semiconductors to fibre-optic systems. As demand grows for advanced technology and clean energy infrastructure, so does demand for the materials Teck can provide.

Of course, mining isn’t without risk. Commodity prices are volatile. Costs can creep up. And Teck is still finishing the final stages of QB2, which could have hiccoughs along the way. But that’s true of any mining company. What sets Teck apart is its strategic planning and resilience. It isn’t overexposed to any one product or market, and it’s focused on long-term trends like electrification and decarbonization. Those themes aren’t going anywhere.

Bottom line

So, why consider Teck now, especially when the Canadian stock is down? Because this is the kind of situation where value shows up before the price recovers. Teck is profitable again. It’s expanding production. It’s positioned for long-term demand. And yet, the market has punished it along with other cyclical stocks. That disconnect creates a window for investors who think ahead.