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Here's Why You Should Give Tetra Tech (TTEK) Stock a Shot Now

Tetra Tech, Inc. TTEK is benefiting from its focus on providing high-end consulting, design and engineering services. Also, factors like U.S. administration priorities, U.S. infrastructure stimulus and its focus on climate change on a global basis are driving the company. For fiscal 2023 (ending September 2023), TTEK anticipates adjusted earnings of $4.90-$5.05 per share. The midpoint of the guided range of $4.98 implies a 10.7% jump from the fiscal 2022 figure of $4.50.

Growth in water and environmental programs is aiding Tetra Tech’s Government Services Group segment. Its Commercial/International Services Group is being supported by robust utilization in high-performance buildings, environmental programs and renewable energy services across TTEK’s global operations.

TTEK follows a balanced capital-allocation strategy, enabling it to utilize its cash flow to improve organic growth capabilities and acquisitions. Tetra Tech acquired RPS Group plc. in January 2023. The acquisition boosts TTEK’s consultancy in water, environment and sustainable infrastructure and also expands its water practice in the United Kingdom besides strengthening its foothold in renewable energy and environmental management.

This Zacks Rank #2 (Buy) company also acquired Amyx, Inc. in the same month. As part of the Federal Information Technology division, the Amyx acquisition expands its use of advanced data analytics, cybersecurity, digital transformation and agile software development solutions for its government and commercial customers and is integrated into TTEK’s Government Services Group. The company’s acquisition of Piteau Associates (March 2022) boosted its capabilities in advanced analytics for providing water management and geotechnical solutions to customers.

Tetra Tech’s measures to reward its shareholders through share repurchases and dividend payouts are encouraging. TTEK paid out dividends worth $46.1 million and $12.2 million in fiscal 2022 (ended September 2022) and in the first three months of fiscal 2023 (ended December 2022), respectively. It repurchased shares worth $200 million in fiscal 2022. In May 2022, the quarterly dividend rate was hiked 15%.

Amid the abovementioned tailwinds, shares of Tetra Tech have gained 10.6% in the past six months.

Zacks Investment Research
Zacks Investment Research


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Other Stocks to Consider

Some other top-ranked companies from the Industrial Products sector are discussed below:

Deere & Company DE presently sports a Zacks Rank #1 (Strong Buy). DE’s earnings surprise in the last four quarters was 4.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

In the past 60 days, estimates for Deere & Company’s fiscal 2023 earnings have increased 8.6%. The stock has rallied 17.9% in the past six months.

Alamo Group Inc. ALG presently sports a Zacks Rank of 1. ALG’s earnings surprise in the last four quarters was 6.0%, on average.

In the past 60 days, estimates for Alamo’s fiscal 2023 earnings have increased 7.5%. The stock has gained 45.8% in the past six months.

Allegion plc ALLE presently carries a Zacks Rank #2 (Buy). ALLE’s earnings surprise in the last four quarters was 10.3%, on average.

In the past 60 days, estimates for Allegion’s fiscal 2023 earnings have increased 4.1%. The stock has gained 13.4% in the past six months.

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Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report

Deere & Company (DE) : Free Stock Analysis Report

Alamo Group, Inc. (ALG) : Free Stock Analysis Report

Allegion PLC (ALLE) : Free Stock Analysis Report

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Zacks Investment Research