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Tetra Tech (TTEK) Gains 13% in Past Month: What's Driving It?

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Shares of Tetra Tech, Inc. (TTEK - Free Report) have gained 13% in the past month. The impressive performance is supported by solid fundamentals, impressive financial  results and healthy growth opportunities. Upward revisions in earnings estimates are reflective of the stock’s strength. TTEK presently carries a Zacks Rank #2 (Buy).

Tetra Tech provides engineering, consulting, program management, technical services and construction management. The company is based in Pasadena and has a market capitalization of $10.2 billion.

The company belongs to the Zacks Pollution Control industry, which comes under the ambit of the Zacks Industrial Products sector. The industry is among the top 28% of more than 250 Zacks industry. In the past month, the industry has gained 7% while the S&P 500 has jumped 3.1% during the same period. The sector has expanded 3.8% in the past month.

Zacks Investment ResearchImage Source: Zacks Investment Research

Factors Influencing the Stock

In the past month, Tetra Tech delivered impressive results for the fourth quarter of fiscal 2021 (ended Oct 3, 2021). The company’s earnings in the quarter surpassed the Zacks Consensus Estimate by 5%. Also, its sales exceeded estimates by 4.03% and expanded 20% from the year-ago quarter. Healthy segmental sales have been beneficial.

Besides its financial performance, Tetra Tech’s solid product offerings and contract wins, a strong backlog of $3,249.9 million and synergistic gains from acquired assets are beneficial. Its businesses are gaining from the U.S. federal, the U.S. commercial and the U.S. state and local customers. Focus on climate change globally, the U.S. infrastructure stimulus and the U.S. administration priorities are likely to support demand.

For fiscal 2022 (ending September 2022), Tetra Tech anticipates net revenues to be $2.60-$2.80 billion, implying a rise from $2.55 billion recorded in fiscal 2021. Its adjusted earnings are predicted to be $4.00-$4.20 per share, higher than the $3.79 recorded in fiscal 2021.

Tetra Tech’s commitment toward returning values to shareholders raises its appeal. Regarding buyout actions, Applied Industrial acquired Enterprise Automation in October 2021. The buyout is expected to strengthen Tetra Tech’s digital technology solutions for water sector clients.

The Zacks Consensus Estimate for Tetra Tech’s earnings per share is pegged at $4.03 for fiscal 2022 (ending September 2022) and $4.49 for fiscal 2023 (ending September 2023), marking increases of 2.3% and 1.8% from the respective 30-day-ago figures. Such upward revisions in earnings estimates reflect healthy operating conditions for the company.

Tetra Tech, Inc. Price and Consensus

Tetra Tech, Inc. Price and Consensus

Tetra Tech, Inc. price-consensus-chart | Tetra Tech, Inc. Quote

Other Stocks to Consider

Three other top-ranked stocks from the sector with their past month price performance are discussed below.

Shares of Casella Waste Systems, Inc. (CWST - Free Report) have gained 4.3% in the past month. CWST’s performance in the last reported quarter was impressive, with an earnings beat of 25.93%.

In the past 30 days, the Zacks Consensus Estimate for Casella Waste’s earnings has increased 10% for 2021 and 6.9% for 2022. The company presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Industrial Technologies, Inc.’s (AIT - Free Report) shares have gained 4% in the past month. AIT’s results delivered in the last quarter were better than expected, with earnings surpassing estimates by 14.29%.

In the past 30 days, the Zacks Consensus Estimate for Applied Industrial’s earnings has increased 1.9% for fiscal 2022 (ending June 2022) and 2.2% for fiscal 2023 (ending June 2023). The AIT stock presently carries a Zacks Rank #2.

Energy Recovery, Inc. (ERII - Free Report) performed well in the past month, with shares rising 22.5%. ERII’s earnings in the last reported quarter surpassed estimates by 2 cents.

In the past 30 days, the Zacks Consensus Estimate for Energy Recovery’s earnings has increased 18.2% for 2021 and 39.3% for 2022. The company presently carries a Zacks Rank #2.