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Here's Why it is Worth Investing in Tetra Tech (TTEK) Now
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Tetra Tech, Inc. (TTEK - Free Report) is well-poised for growth courtesy of its diversified business structure, solid product portfolio, acquired assets and a sound capital-deployment strategy.
Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $7.1 billion. In the past three months, it has appreciated 12.8%, compared with the industry’s growth of 9.7%.
Let’s delve onto the factors that make investment in the company a smart choice at the moment.
Diversified Business Structure: Tetra Tech’s diversified business structure and a strong portfolio of products helps it in mitigating the adverse impact of weakness in one end market with strength across others. For fiscal 2021 (ending September 2021), the company estimates healthy net revenues from the U.S. Federal clients and the U.S. commercial clients. Also, international clients are likely to boost net revenues, backed by strength in its renewable energy services work. For fiscal 2021, the company anticipates to generate net revenues of $2.40-$2.55, higher than $2.35-$2.55 billion guided previously.
Acquisitions Benefits: The company’s buyout of BlueWater Federal Solutions (September 2020) is anticipated to enhance its capabilities in cybersecurity solutions, artificial intelligence and mission-critical services for the federal clients. Also, its acquisition of Segue Technologies (February 2020) has been strengthening its business associated with government clients and commercial customers. Notably, in fiscal 2020 (ended September 2020), Tetra Tech invested $68.5 million in business acquisitions.
Rewards to Shareholders: It remains committed to rewarding shareholders through share-buyback programs and dividend payouts. In fiscal 2020, the company repurchased shares worth $117 million and paid out dividends worth $35 million. Also, in the first quarter of fiscal 2021 (ended December 2020), the company repurchased shares worth $15 million and distributed dividends totaling $9.2 million. In April 2020, it announced a 13% hike in its quarterly dividend rate.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for its fiscal 2021 earnings has moved up from $3.41 to $3.59 on four upward estimate revisions against none downward. Further, the consensus estimate for its fiscal 2022 (ended September 2022) earnings has increased from $3.74 to $3.86 on three upward estimate revisions versus none downward.
Energy Recovery has a trailing four-quarter earnings surprise of 232.08%, on average.
Heritage-Crystal has a trailing four-quarter earnings surprise of 74.45%, on average.
Sharps Compliance has a trailing four-quarter earnings surprise of 231.67%, on average.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Here's Why it is Worth Investing in Tetra Tech (TTEK) Now
Tetra Tech, Inc. (TTEK - Free Report) is well-poised for growth courtesy of its diversified business structure, solid product portfolio, acquired assets and a sound capital-deployment strategy.
Notably, the Zacks Rank #2 (Buy) company has a market capitalization of $7.1 billion. In the past three months, it has appreciated 12.8%, compared with the industry’s growth of 9.7%.
Let’s delve onto the factors that make investment in the company a smart choice at the moment.
Diversified Business Structure: Tetra Tech’s diversified business structure and a strong portfolio of products helps it in mitigating the adverse impact of weakness in one end market with strength across others. For fiscal 2021 (ending September 2021), the company estimates healthy net revenues from the U.S. Federal clients and the U.S. commercial clients. Also, international clients are likely to boost net revenues, backed by strength in its renewable energy services work. For fiscal 2021, the company anticipates to generate net revenues of $2.40-$2.55, higher than $2.35-$2.55 billion guided previously.
Acquisitions Benefits: The company’s buyout of BlueWater Federal Solutions (September 2020) is anticipated to enhance its capabilities in cybersecurity solutions, artificial intelligence and mission-critical services for the federal clients. Also, its acquisition of Segue Technologies (February 2020) has been strengthening its business associated with government clients and commercial customers. Notably, in fiscal 2020 (ended September 2020), Tetra Tech invested $68.5 million in business acquisitions.
Rewards to Shareholders: It remains committed to rewarding shareholders through share-buyback programs and dividend payouts. In fiscal 2020, the company repurchased shares worth $117 million and paid out dividends worth $35 million. Also, in the first quarter of fiscal 2021 (ended December 2020), the company repurchased shares worth $15 million and distributed dividends totaling $9.2 million. In April 2020, it announced a 13% hike in its quarterly dividend rate.
Estimate Revisions: In the past 60 days, the Zacks Consensus Estimate for its fiscal 2021 earnings has moved up from $3.41 to $3.59 on four upward estimate revisions against none downward. Further, the consensus estimate for its fiscal 2022 (ended September 2022) earnings has increased from $3.74 to $3.86 on three upward estimate revisions versus none downward.
Other Key Picks
Some other top-ranked stocks from the same space are Energy Recovery, Inc. (ERII - Free Report) , Heritage-Crystal Clean, Inc and Sharps Compliance Corp. , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Energy Recovery has a trailing four-quarter earnings surprise of 232.08%, on average.
Heritage-Crystal has a trailing four-quarter earnings surprise of 74.45%, on average.
Sharps Compliance has a trailing four-quarter earnings surprise of 231.67%, on average.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>