Is Teck Resources a Buy?

Teck Resources is down 30% in the past year. Is the stock now oversold?

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Teck Resources (TSX:TECK.B) is down 30% in the past year. Contrarian investors are wondering if TECK stock is now oversold and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio.

Teck Resources share price

Teck Resources trades near $46 at the time of writing compared to around $66 a year ago.

A look at the long-term chart gives investors a good sense of how volatile Teck can be through the commodity cycles.

Teck is a copper and zinc mining company with operations in Canada, the United States, Peru, and Chile. In Canada, the mines include Highland Valley Copper and Trail (zinc), both located in British Columbia. The U.S. operations include The Red Dog zinc mine in Alaska. Teck produces copper and zinc at its Antamina mine in Peru. In Chile, Teck operates the Quebrada copper mine and the Carmen de Andacollo copper and gold mine.

Copper and zinc markets

Copper plunged last month from US$5.80 per pound to US$4.40 per pound when Donald Trump announced a 50% tariff on copper imports. Over the past five years, copper has largely traded in a range of about US$3 to US$5, with a huge plunge in 2022 followed by a general upward trend. At the time of writing, copper trades near US$4.50 per pound.

Zinc has also been volatile. The metal surged from US$2,500 per ton in 2020 to nearly US$4,500 per ton in 2022 before going into a steep decline that took it below US$2,500 in 2023 and 2024. It then rallied above US$3,000 last year, but has been under pressure in 2025 and currently trades near US$2,800 per ton.

Copper demand is expected to rise steadily as the energy transition continues. Electric vehicles, solar panels, wind turbines, and battery storage systems all use copper. Expansion of electrical grids will also drive up demand. This should be positive for Teck Resources due to its position as a major copper producer.

Zinc is used for a wide array of industrial products. The economic slump in China has put pressure on zinc prices as the country reduced its imports of the metal. A potential boost over the long term could come from the use of zinc-ion batteries from power storage.

Teck Resources earnings

Teck reported solid Q2 2025 results compared to the previous year. Revenue rose to $2.02 billion from $1.8 billion. Gross profit increased to $471 million from $418 million.

Looking ahead, Teck has a number of growth projects that will drive production expansion including an extension of the life of the Highland Valley Copper Mine from 2028 to 2046 with average annual copper production of 132,000 tonnes. The capital expenses will be $2.1 billion to $2.4 billion and spent over the next three years.

Time to buy?

Long-term demand growth for copper and zinc should be positive for Teck Resources. That being said, tariff uncertainty and weak Chinese demand could put added pressure on metal prices in the near term. As such, I wouldn’t back up the truck today. A better entry point could be on the way.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

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