1 Magnificent Canadian Stock Down But Not Out to Buy Right Now

Don’t count out this top basic materials stock, especially as copper prices soar.

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Safety helmets and gloves hang from a rack on a mining site.

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When markets take a dip, some of the best opportunities come from buying great businesses at lower prices. One Canadian stock that fits this description is Teck Resources (TSX:TECK.B). It’s down by a notable percentage recently, but it offers strong long-term potential. It mines copper, zinc and formerly coal, key materials for the energy transition and global metal needs. If you’re searching for one Canadian stock to buy and hold forever, Teck deserves a closer look.

Into earnings

Teck is a diversified natural resources company based in Vancouver. According to its 2024 annual report, it posted revenue of $9.1 billion and delivered net income of $283 million. That shows it has scale. The metals it produces are essential in making everything from electric vehicles to infrastructure. With global demand for copper and zinc expected to rise, Teck stands to benefit over the long run.

The most recent quarter worth considering is Q1 2025, which came out April 24, 2025. Teck reported adjusted earnings per share of $0.60. Revenue hit $2.3 billion, a 41.4% year-over-year increase from 1.6 billion. Operating profits were under pressure, but the bottom line surprised to the upside. That’s a sign that Teck is managing costs and market fluctuations well.

Caution is important here. Teck’s trailing price-to-earnings ratio is high at about 75.3, and analysts expect earnings to fall before normalizing. Trading at that multiple does mean investors are paying for future growth. If that growth doesn’t materialize, returns could lag. And let’s not forget the environment. Teck has been fined for selenium and lead contamination in B.C., and pollution issues remain risks to reputation and cost .

Looking ahead

On the upside, Teck closed its steelmaking coal business sale in July 2024, focusing more on copper and zinc. That change aligns the Canadian stock with metals driving future power and tech infrastructure, especially copper. It means less exposure to fluctuating thermal coal prices and more to materials playing a role in cleaner energy.

Teck also returns cash to shareholders. In fiscal 2024, it paid a dividend of $0.58 per share. That yield is modest, but combined with potential upside, it adds to returns. The Canadian stock also continues to invest in existing operations and new projects, including exploration and development in copper and zinc-rich regions.

What truly makes Teck a hold-forever candidate is its long-term exposure to global trends. Copper and zinc demand is set to rise with green energy and infrastructure buildout. Teck has both the reserves and production capacity to meet that demand. And as it becomes a purer-play on these metals, its valuation narrative could shift to match peers in copper-focused mining.

Bottom line

However, this isn’t a risk-free strategy. Commodity prices can rise or fall sharply. Environmental regulation could tighten. And if demand for electric vehicles slows, demand may soften. That’s why Teck’s valuation should be watched carefully. This miner is probably better in a diversified portfolio than as your only holding.

In a nutshell, Teck Resources offers a mix of assets tied to long-term demand, an improving earnings picture, and a valuation that reflects both its promise and its risks. If you believe in the metals transition and are willing to ride out commodity cycles, this could be the Canadian stock to own for the next decade, especially following its recent drop. Just don’t ignore the risks or overpay. The opportunity is there, but like most things worth holding forever, it comes with a price, not just in dollars, but in patience and a clear-eyed view of the cycle ahead.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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