While the TSX Composite Index recently hit a new all-time high, many fundamentally strong stocks with years-long history of delivering solid returns are struggling. And one notable example is Teck Resources (TSX:TECK.B).
After rallying by 166% in the previous five years, its shares have seen over 15% value erosion so far in 2025. And down 32% from its 52-week high, Teck stock currently trades at $49.43 per share with a market cap of $24.7 billion. At this market price, it also offers nearly 1% annualized dividend yield.
In this article, I’ll talk about three key reasons why Teck stock looks primed for a strong comeback.
Improving margins even in tough times
Despite some pressure on commodity prices and rising costs, Teck showed signs of resilience in the first quarter of 2025. This makes a strong case for its comeback.
The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) surged to $927 million in the first quarter, more than doubling on a YoY (year-over-year) basis. That was supported by a 7% YoY rise in its copper production and better sales volumes, especially in the zinc segment.
While challenges like weather-related delays at Quebrada Blanca (QB) copper asset affected output, Teck still reported a healthy gross profit of $536 million. The copper and zinc divisions, in particular, helped push margins higher, even as some operations saw temporary downtime. This kind of margin strength during volatility could help attract investor confidence back to Teck stock.
Copper production is headed in the right direction
Now that we’ve talked about profitability, there’s another reason why Teck stock may soon turn positive.
The company’s copper business is going through a transformation. Teck expects to produce between 490,000 and 565,000 tonnes of copper in 2025. And despite some setbacks early in the year, it continues to improve daily throughput and increase ore grades at its QB operations.
By the end of 2026, Teck aims to push production even higher, toward 620,000 tonnes annually, with major help from Highland Valley and Quebrada Blanca.
This production growth is key, especially with copper demand expected to climb as the energy transition accelerates. Teck stock could benefit directly from higher volumes and better pricing power in the quarters ahead.
Committed to rewarding shareholders
We’ve talked about margins and production, but here’s one more factor that could spark a rebound in Teck stock.
Between January 1 and April 23, Teck returned over $500 million to shareholders through buybacks. That was part of a larger $3.25 billion program, more than half of which has already been executed.
The company also pays a quarterly dividend and ended the first quarter with a strong net cash position of $764 million and total liquidity of $10 billion. These numbers show how strong its balance sheet is, even in a tougher year. And when a company rewards investors consistently while keeping its finances healthy, it often finds its way back into investor portfolios.
Teck stock might be down about 32% from its 52-week high, but its core operations are still solid. If commodity prices hold or strengthen, a strong rebound in Teck stock could start very soon.
