Teck Resources (TECK) Surges 11.3%: Is This an Indication of Further Gains?

Teck Resources Ltd (TECK) shares ended the last trading session 11.3% higher at $39.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.7% gain over the past four weeks.Shares of Teck Resources jumped since it announced that it has entered into a merger agreement with Anglo American plc NGLOY to form  Anglo Teck group. This merger is expected to create a global critical minerals leader and be highly attractive for both Teck Resources and Anglo American shareholders. Anglo Teck will have more than 70% exposure to copper and set to be among the top five global copper producers. The combined annual copper production of 1.2 million tons is projected to grow by 10% to 1.35 million tons by 2027. Within four years of completion, the deal is expected to yield around $800 million in annual pre-tax synergies. Around 80% of this is expected to be achieved within two years through economies of scale and operational efficiencies. This company is expected to post quarterly earnings of $0.44 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $2.21 billion, up 5.7% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Teck Resources, the consensus EPS estimate for the quarter has been revised 11.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TECK going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Teck Resources belongs to the Zacks Mining - Miscellaneous industry. Another stock from the same industry, Nexa Resources S.A. (NEXA), closed the last trading session 1.4% lower at $4.8. Over the past month, NEXA has returned -0.6%.For Nexa Resources, the consensus EPS estimate for the upcoming report has changed +25% over the past month to $0.1. This represents a change of +400% from what the company reported a year ago. Nexa Resources currently has a Zacks Rank of #3 (Hold).Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teck Resources Ltd (TECK): Free Stock Analysis Report Anglo American (NGLOY): Free Stock Analysis Report Nexa Resources S.A. (NEXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks