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Tetra Tech (TTEK) Gains 20.8% in a Year: Will the Trend Last?
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Tetra Tech, Inc. (TTEK - Free Report) appears in good shape, with its shares having rallied 20.8% in a year, outperforming the industry’s 1.1% decrease.
What’s Aiding TTEK?
Higher inland waterways and coastal flood protection programs, as well as continued support for the USA energy programs within the Government Services Group (GSG) segment are aiding TTEK. Increased activity on clean energy and environmental services programs has been supporting the Commercial / International Services Group segment.
TTEK’s measures to expand its operations through asset additions support its top-line growth. The acquisition of RPS Group plc, in January 2023, enhanced Tetra Tech’s consultancy in water, environment and sustainable infrastructure, thus expanding its water practice in the United Kingdom and strengthening its foothold in renewable energy and environmental management.
The company also acquired Reston, VA-based firm Amyx, Inc. in January 2023. As part of the Federal Information Technology division, the Amyx acquisition expands its use of advanced data analytics, cybersecurity, digital transformation and agile software development solutions for its government and commercial customers. Amyx is integrated into TTEK’s GSG segment.
Tetra Tech’s focus on providing high-end consulting, design and engineering services is constantly enhancing its competitive edge. Increased activity in the U.S. Federal, U.S. State & Local, U.S. Commercial and International client sectors is supporting the company’s top line. TTEK is also gaining from a robust backlog level. Tetra Tech’s backlog at the end of at the end of the first quarter of fiscal 2024 (ended Dec 31, 2023) was $4.7 billion, reflecting an increase of 24.2% year over year.
The company’s commitment to rewarding its shareholders through dividends holds promise. In the first three months of fiscal 2024, Tetra Tech paid out dividends of $13.9 million, up 13.9% year over year. The quarterly dividend rate was hiked 13% in May 2023.
Image Source: Zacks Investment Research
Will the Uptrend in Shares Last?
Though the company is facing challenges due to increasing costs of sales and forex woes, key factors, including U.S. administration priorities, U.S. infrastructure stimulus and TTEK’s focus on climate change on a global basis, are expected to drive the company’s performance in the near term.
Zacks Rank & Other Stocks to Consider
Tetra Tech currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
AIT’s earnings estimates have remained steady for fiscal 2024 in the past 60 days. Shares of Applied Industrial have risen 27.8% in the past year.
AZZ Inc. (AZZ - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 37.5%, on average.
In the past 60 days, estimates for AZZ’s earnings have increased 4.9% for fiscal 2024. The stock has soared 72.6% in the past year.
Brady Corporation (BRC - Free Report) presently carries a Zacks Rank of 2. BRC’s earnings surprise in the last four quarters was 7%, on average.
In the past 60 days, estimates for Brady’s fiscal 2024 earnings have remained steady. The stock has gained 15.9% in the past year.
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Tetra Tech (TTEK) Gains 20.8% in a Year: Will the Trend Last?
Tetra Tech, Inc. (TTEK - Free Report) appears in good shape, with its shares having rallied 20.8% in a year, outperforming the industry’s 1.1% decrease.
What’s Aiding TTEK?
Higher inland waterways and coastal flood protection programs, as well as continued support for the USA energy programs within the Government Services Group (GSG) segment are aiding TTEK. Increased activity on clean energy and environmental services programs has been supporting the Commercial / International Services Group segment.
TTEK’s measures to expand its operations through asset additions support its top-line growth. The acquisition of RPS Group plc, in January 2023, enhanced Tetra Tech’s consultancy in water, environment and sustainable infrastructure, thus expanding its water practice in the United Kingdom and strengthening its foothold in renewable energy and environmental management.
The company also acquired Reston, VA-based firm Amyx, Inc. in January 2023. As part of the Federal Information Technology division, the Amyx acquisition expands its use of advanced data analytics, cybersecurity, digital transformation and agile software development solutions for its government and commercial customers. Amyx is integrated into TTEK’s GSG segment.
Tetra Tech’s focus on providing high-end consulting, design and engineering services is constantly enhancing its competitive edge. Increased activity in the U.S. Federal, U.S. State & Local, U.S. Commercial and International client sectors is supporting the company’s top line. TTEK is also gaining from a robust backlog level. Tetra Tech’s backlog at the end of at the end of the first quarter of fiscal 2024 (ended Dec 31, 2023) was $4.7 billion, reflecting an increase of 24.2% year over year.
The company’s commitment to rewarding its shareholders through dividends holds promise. In the first three months of fiscal 2024, Tetra Tech paid out dividends of $13.9 million, up 13.9% year over year. The quarterly dividend rate was hiked 13% in May 2023.
Image Source: Zacks Investment Research
Will the Uptrend in Shares Last?
Though the company is facing challenges due to increasing costs of sales and forex woes, key factors, including U.S. administration priorities, U.S. infrastructure stimulus and TTEK’s focus on climate change on a global basis, are expected to drive the company’s performance in the near term.
Zacks Rank & Other Stocks to Consider
Tetra Tech currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2 and a trailing four-quarter earnings surprise of 10.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have remained steady for fiscal 2024 in the past 60 days. Shares of Applied Industrial have risen 27.8% in the past year.
AZZ Inc. (AZZ - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of approximately 37.5%, on average.
In the past 60 days, estimates for AZZ’s earnings have increased 4.9% for fiscal 2024. The stock has soared 72.6% in the past year.
Brady Corporation (BRC - Free Report) presently carries a Zacks Rank of 2. BRC’s earnings surprise in the last four quarters was 7%, on average.
In the past 60 days, estimates for Brady’s fiscal 2024 earnings have remained steady. The stock has gained 15.9% in the past year.