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Here's Why Investing in Tetra Tech (TTEK) Stock Makes Sense
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Tetra Tech, Inc. (TTEK - Free Report) currently boasts robust prospects on diversified business structure, solid backlog level, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $8.6 billion. In the past six months, it has gained 5.8% against the industry’s decline of 6.1%.
Image Source: Zacks Investment Research
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Strength Across Businesses: Tetra Tech has been benefiting from projects related to climate change, renewable energy and environmental programs. In the quarters ahead, digital water transformation, disaster response planning, infrastructure stimulus, as well as commercial and government projects are expected to drive its performance. For fiscal 2022 (ending September 2022), the company anticipates generating net revenues of $2.65-$2.80 billion, higher than $2.60-$2.80 billion estimated previously. Exiting first-quarter fiscal 2022 (ended December 2021), its backlog remained strong at $3,448.3 million.
Benefits From Acquisitions: The company acquired Enterprise Automation in October 2021. The buyout has been strengthening its digital technology solutions for water sector clients. Its Hoare Lea buyout (July 2021) boosted sustainable building solutions for commercial and government clients. Also, the acquisition of Kaizen Company (May 2021) enhanced growth opportunities for its Government Services Group. In fiscal 2021 (ended September 2021) and the first quarter of fiscal 2022, TTEK spent $84.9 million and $8.9 million for acquisitions, respectively.
Shareholder-Friendly Policies: Tetra Tech remains focused on rewarding its shareholders through dividend payouts and share buybacks. In first-quarter fiscal 2022, the company paid out dividends worth $10.8 million and bought back shares worth $50 million. Its quarterly dividend rate was hiked by 18% in April 2021. Also, the company announced an additional share buyback program worth $400 million in October 2021. It’s worth noting that exiting the fiscal first quarter, it was left with $498 million of share-repurchase authorization.
Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for the company’s fiscal 2022 earnings has trended up from $4.15 to $4.28 per share on two upward estimate revisions against none downward. Also, the estimates for fiscal 2023 (ending September 2023) earnings have increased from $4.48 to $4.63 on two upward estimate revisions versus none downward.
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
IDEX’s earnings estimates increased 4.1% for 2022 in the past 30 days. IEX’s shares have lost 14.4% in the past six months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022). SXI’s shares have gained 6% in the past six months.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 9.85%, on average.
In the past 30 days, Nordson’s earnings estimates have increased 0.8% for fiscal 2022 (ending October 2022). NDSN’s shares have lost 6.7% in the past six months.
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Here's Why Investing in Tetra Tech (TTEK) Stock Makes Sense
Tetra Tech, Inc. (TTEK - Free Report) currently boasts robust prospects on diversified business structure, solid backlog level, acquired assets and a sound capital-deployment strategy.
The Zacks Rank #2 (Buy) company has a market capitalization of $8.6 billion. In the past six months, it has gained 5.8% against the industry’s decline of 6.1%.
Image Source: Zacks Investment Research
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Strength Across Businesses: Tetra Tech has been benefiting from projects related to climate change, renewable energy and environmental programs. In the quarters ahead, digital water transformation, disaster response planning, infrastructure stimulus, as well as commercial and government projects are expected to drive its performance. For fiscal 2022 (ending September 2022), the company anticipates generating net revenues of $2.65-$2.80 billion, higher than $2.60-$2.80 billion estimated previously. Exiting first-quarter fiscal 2022 (ended December 2021), its backlog remained strong at $3,448.3 million.
Benefits From Acquisitions: The company acquired Enterprise Automation in October 2021. The buyout has been strengthening its digital technology solutions for water sector clients. Its Hoare Lea buyout (July 2021) boosted sustainable building solutions for commercial and government clients. Also, the acquisition of Kaizen Company (May 2021) enhanced growth opportunities for its Government Services Group. In fiscal 2021 (ended September 2021) and the first quarter of fiscal 2022, TTEK spent $84.9 million and $8.9 million for acquisitions, respectively.
Shareholder-Friendly Policies: Tetra Tech remains focused on rewarding its shareholders through dividend payouts and share buybacks. In first-quarter fiscal 2022, the company paid out dividends worth $10.8 million and bought back shares worth $50 million. Its quarterly dividend rate was hiked by 18% in April 2021. Also, the company announced an additional share buyback program worth $400 million in October 2021. It’s worth noting that exiting the fiscal first quarter, it was left with $498 million of share-repurchase authorization.
Estimate Revisions: In the past 30 days, the Zacks Consensus Estimate for the company’s fiscal 2022 earnings has trended up from $4.15 to $4.28 per share on two upward estimate revisions against none downward. Also, the estimates for fiscal 2023 (ending September 2023) earnings have increased from $4.48 to $4.63 on two upward estimate revisions versus none downward.
Other Stocks to Consider
Some other top-ranked companies from the Zacks Industrial Products sector are discussed below.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. It delivered a four-quarter earnings surprise of 1.46%, on average.
IDEX’s earnings estimates increased 4.1% for 2022 in the past 30 days. IEX’s shares have lost 14.4% in the past six months.
Standex International Corporation (SXI - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 5.85%, on average.
In the past 30 days, Standex’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022). SXI’s shares have gained 6% in the past six months.
Nordson Corporation (NDSN - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last four quarters was 9.85%, on average.
In the past 30 days, Nordson’s earnings estimates have increased 0.8% for fiscal 2022 (ending October 2022). NDSN’s shares have lost 6.7% in the past six months.