Are We in a Resource Stock Rebirth? Signs From the TSX

Resource stocks are staging a comeback so here’s how Cameco, Teck, and Tourmaline could benefit.

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 October 8, 2025 4:50 pm EDT

| More on: CCOTECK.BTOU

Key Points

Commodities strength and shifting investor sentiment are driving a comeback in Canadian resource and cyclical stocks.
Many resource names look cheap entering 2025, attracting value investors and fresh capital.
Cameco benefits from uranium strength and its Westinghouse stake; Teck eyes a big merger; Tourmaline generates strong cash and dividends.

The signs are there. Canada looks as though resource stocks are making quite the comeback, and there are many reasons behind it. Commodity strength continues to feed into resource equities, pushing up materials and mining stocks. Sector rotation and investor sentiment have shifted towards these resources and cyclical stocks, looking at metal mining, defence, and construction stocks in particular.

Furthermore, value and capital injection look to be improving, with many resource names showing cheap valuations coming into 2025. Meanwhile, it’s all happening outside of Canada as well, with the world’s policies changing to support resources and critical minerals. So, how can investors get in on the action? They can get in by choosing resource stocks like these.

construction workers talk on the job site — Source: Getty Images

Cameco

Cameco (TSX:CCO) is a uranium provider benefiting from its core uranium business as well as its downstream investment. This includes its joint venture with Westinghouse, which also provides a connection to Alphabet. And the strength in nuclear and uranium pricing certainly doesn’t hurt.

The future is clearer than ever, especially after earnings. CCO stock reported $321 million in net earnings, with $308 million in adjusted net earnings. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) hit $673 million during the quarter, with adjusted EBITDA rising 43% year over year.

Higher sales and volumes continue to improve average realized prices, suggesting that Cameco stock is unlikely to slow down. Its 49% equity share in Westinghouse is a huge win in this area, as are lower costs on sales. So, this is certainly one stock to watch.

TECK

Another to watch is Teck Resources (TSX:TECK.B), with the critical mineral provider making a lot of moves in the last while. The biggest headline? Teck and Anglo American announced they would merge in a “merger of equals” transaction, creating a global copper and critical mineral powerhouse.

The deal would mean Anglo holds 62.4% of the combined entity, and Teck the remaining 37.6%. Meanwhile, Teck stock has been proving its worth as an investment, most recently during its third-quarter earnings. That being said, it did lower guidance for 2025 for its copper production at Quebrada Blanca, and expects higher unit costs.

Looking ahead, production guidance has been scaled back, though it remains optimistic that a recovery is underway. For now, the resource stock has scaled back its copper production, as the segment is under profitability pressure with weaker prices and rising costs. So, while still a large part of the business, management is merely being cautious.

TOU

Finally, we have Tourmaline Oil (TSX:TOU), an energy stock absolutely surging. The company focuses on natural gas through its low-cost Montney development, providing a strong dividend and shareholder returns — all while trading at just 15.4 times earnings.

During its recent quarterly earnings, the energy stock reported strong free cash flow, with earnings per share (EPS) reported at $1.35, beating estimates by almost 40%. Furthermore, revenue came in at $1.51 billion, which was strong but beat estimates. Even so, with a cash flow of $822.8 million, the company can continue supporting its solid $0.50 per share quarterly dividend.

Looking ahead, TOU stock is a solid cash-generating resource stock that offered an EPS surprise. Even with revenue slightly tighter, its strong free cash flow shows the resilience of the company, along with operational excellence. These are critical when investing in resource stocks during a potential rebound.

Bottom line

Resource stocks may not be completely rebounding yet, but don’t let this fool you. These Canadian stocks are due to surge, and right now are merely balancing the books and making deals as this future gets closer. So, if you’re looking for an investment in resource stocks, these are great additions to your watchlist.