Tetra Tech, Inc. (TTEK - Free Report) currently seems to be a smart choice for investors seeking exposure in the pollution control space. Solid fundamentals and positive revision in earnings estimates are reflective of healthy growth potential of the stock.
The California-based company currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Pollution Control industry, which is in turn a sub-industry of Zacks Industrial Products sector. We believe that stringent government regulations, pollution-related risks and growing demand in emerging nations are aiding pollution control equipment and services.
Below we discussed why investing in Tetra Tech will be a smart choice.
Share Price Performance, Impressive Earnings Outlook: Market sentiments seem to be working in favor of the company over time. In the past three months, Tetra Tech’s share price has gained 19.9% compared with the industry’s growth of 5%.
It is worth mentioning here that the company’s earnings surpassed estimates by 11.25% and grew 25.4% from the year-ago quarter in the third quarter of fiscal 2019 (ended Jun 30, 2019). The bottom-line results benefited from strengthening businesses related to municipal water infrastructure, disaster response, renewable energy and other businesses.
For 2019, the company raised its earnings per share projection from the previously stated $2.95-$3.05 to $3.10-$3.15. The bottom-line results will likely gain from healthy revenues, acquired assets and lower taxes of 23% (versus 24% mentioned earlier).
In the past 30 days, earnings estimates for fiscal 2019 (ending September 2019) and fiscal 2020 (ending September 2020) have been revised upward, reflecting positive sentiments about the company’s growth prospects. Currently, the Zacks Consensus Estimate for earnings for Tetra Tech is pegged at $3.06 for fiscal 2019 and $3.42 for fiscal 2020, suggesting growth of 1% and 2.1% from the respective 30-day-ago figures.
Tetra Tech, Inc. Price and Consensus