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Tetra Tech (TTEK) Shares Up 11.3% in 6 Months: Here's Why
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Tetra Tech, Inc. (TTEK - Free Report) appears in good shape, with its shares rallying 11.3% over the past six months compared with the industry’s growth of 8.8%.
Catalysts Behind the Price Surge
Tetra Tech’s diversified business structure allows it to mitigate the adverse impacts of weakness in one of its end markets with strength across the others. Also, its focus on providing high-end consulting, design and engineering services is constantly amplifying its competitive edge.
New funding for water & environment is supporting revenues from the U.S. Federal clients. The company’s focus on environmental programs and sustainability is driving revenues from U.S. commercial clients. Digital water transformation activities along with higher local and state funding are driving revenues for the U.S. state and local clients.
Tetra Tech’s ability to penetrate different markets through acquisitions is commendable. The Piteau Associates acquisition in March 2022 is boosting its capabilities in advanced analytics for providing water management and geotechnical solutions to its customers. The buyout of Axiom Data Science in March 2022 has strengthened TTEK’s advanced climate data analytics solutions offerings.
Image Source: Zacks Investment Research
The company utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. In fiscal 2022 (ended Oct 2, 2022), TTEK used $200 million to repurchase shares and paid dividends worth $46.1 million to its shareholders. The quarterly dividend rate also hiked 15% in May 2022.
TTEK follows a balanced capital-allocation strategy. The company’s cash and cash equivalents at the end of the fourth quarter of fiscal 2022 was $185.1 million. The figure was much higher than the current portion of long-term debt of $12.5 million. This suggests that the company has sufficient cash to meet current debt obligations.
Zacks Rank & Other Stocks to Consider
Tetra Tech carries a Zacks Rank #2 (Buy) at present. Some other top-ranked companies from the Industrial Products sector are discussed below:
AIT’s earnings estimates have increased 4.6% for fiscal 2023 (ending June 2023) in the past 60 days. Shares of Applied Industrial have risen 20% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 1.8% for 2022. The stock has rallied 20.3% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
ENS’ earnings estimates have increased 0.6% for fiscal 2023 (ending March 2023) in the past 60 days. The stock has gained 7.9% in the past six months.
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Tetra Tech (TTEK) Shares Up 11.3% in 6 Months: Here's Why
Tetra Tech, Inc. (TTEK - Free Report) appears in good shape, with its shares rallying 11.3% over the past six months compared with the industry’s growth of 8.8%.
Catalysts Behind the Price Surge
Tetra Tech’s diversified business structure allows it to mitigate the adverse impacts of weakness in one of its end markets with strength across the others. Also, its focus on providing high-end consulting, design and engineering services is constantly amplifying its competitive edge.
New funding for water & environment is supporting revenues from the U.S. Federal clients. The company’s focus on environmental programs and sustainability is driving revenues from U.S. commercial clients. Digital water transformation activities along with higher local and state funding are driving revenues for the U.S. state and local clients.
Tetra Tech’s ability to penetrate different markets through acquisitions is commendable. The Piteau Associates acquisition in March 2022 is boosting its capabilities in advanced analytics for providing water management and geotechnical solutions to its customers. The buyout of Axiom Data Science in March 2022 has strengthened TTEK’s advanced climate data analytics solutions offerings.
Image Source: Zacks Investment Research
The company utilizes its cash flow to reward its shareholders through dividend payouts and share-repurchase programs. In fiscal 2022 (ended Oct 2, 2022), TTEK used $200 million to repurchase shares and paid dividends worth $46.1 million to its shareholders. The quarterly dividend rate also hiked 15% in May 2022.
TTEK follows a balanced capital-allocation strategy. The company’s cash and cash equivalents at the end of the fourth quarter of fiscal 2022 was $185.1 million. The figure was much higher than the current portion of long-term debt of $12.5 million. This suggests that the company has sufficient cash to meet current debt obligations.
Zacks Rank & Other Stocks to Consider
Tetra Tech carries a Zacks Rank #2 (Buy) at present. Some other top-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy) and a trailing four-quarter earnings surprise of 24.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.
AIT’s earnings estimates have increased 4.6% for fiscal 2023 (ending June 2023) in the past 60 days. Shares of Applied Industrial have risen 20% in the past six months.
IDEX Corporation (IEX - Free Report) presently has a Zacks Rank of 2. IEX’s earnings surprise in the last four quarters was 5.7%, on average.
In the past 60 days, IDEX’s earnings estimates have increased 1.8% for 2022. The stock has rallied 20.3% in the past six months.
EnerSys (ENS - Free Report) delivered an average four-quarter earnings surprise of 2.1%. ENS presently carries a Zacks Rank of 2.
ENS’ earnings estimates have increased 0.6% for fiscal 2023 (ending March 2023) in the past 60 days. The stock has gained 7.9% in the past six months.