Back to top

Image: Bigstock

Bull Of The Day: Tetra Technologies (TTI)

Read MoreHide Full Article

Tetra Technologies (TTI - Free Report) is a Zacks Rank #1 (Strong Buy) that  is on the smaller side of oil patch plays with a market capitalization of just of $500M.  The stock has seen a dramatic decline over the last few weeks, but earnings estimates are still rather high.  Let’s explore more about this stock in this Bull Of The Day article.


TETRA Technologies, Inc., together with its subsidiaries, operates as a diversified oil and gas services company. It operates through Completion Fluids & Products Division and Water & Flowback Services segments. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry.  The company was incorporated in 1981 and is headquartered in The Woodlands, Texas.

Most Recent Earnings Report

I see the most recent earnings report was a huge beat.  The company posted $0.06 in EPS when Wall Street was looking for $0.00.  That 6 cent difference translates to a positive earnings surprise of 600%.

Following the report, analysts that cover this stock held their earnings estimates for the next  quarter still.  The following quarter saw an increase, but the full years numbers moved the most.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For TTI, I see two beats, one meet and one miss of the Zacks Consensus Estimate.  That is always good to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

The average positive earnings surprise over the course of the last year works out to be 30%.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher.  For AVT, I see annual estimates moving higher.

Over the last 60 days, I see a few increases.

The full fiscal year 2022 has moved from $0.11 to $0.20.

Next year has also increased from $0.28 to $0.30.

Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).


The valuation for TTI is a little stiff, but considering Jamie Dimon and a slew of others see oil prices moving much higher, it is probably a good name to have some exposure to.  The forward multiple is 20x, which is a lot, but so is the 68% topline growth the company posted in the most recent earnings report.  The price to book is 4.8x and also a little high.  The price to sales multiple comes in at 1.2x.



In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Tetra Technologies, Inc. (TTI) - free report >>