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Here's Why Investors Should Bet on Tetra Tech (TTEK) Stock

Tetra Tech, Inc. TTEK is benefiting from its focus on providing high-end consulting, design and engineering services. Also, key factors like U.S. administration priorities, infrastructure stimulus and its focus on climate change on a global basis bode well for the company.

For fiscal 2023 (ending September 2023), this Zacks Rank #1 (Strong Buy) company expects adjusted earnings in the range of $5.07-$5.17 per share. The midpoint of the guided range, $5.12, implies a 13.8% rise from the fiscal 2022 figure of $4.50.

Growth in broad-based water and environmental programs, and an increase in international development work, especially for Ukraine energy programs, are aiding Tetra Tech’s Government Services Group segment.

The Commercial/International Services Group segment is being aided by growth in renewable energy programs and environmental work across the United States and high-performance buildings work worldwide.

TTEK has been strengthening and expanding its businesses through asset additions for a while. The acquisition of RPS Group plc (January 2023) enhanced Tetra Tech’s consultancy in water, environment and sustainable infrastructure. The buyout also expanded its water practice in the United Kingdom, and strengthened its foothold in renewable energy and environmental management.

TTEK also acquired Amyx, Inc. in January. As part of the Federal Information Technology division, the Amyx acquisition expanded TTEK’s use of advanced data analytics, cybersecurity, digital transformation and agile software development solutions for its government and commercial customers.  

The acquisition of Piteau Associates (March 2022) boosted TTEK’s capabilities in advanced analytics for providing water management and geotechnical solutions to its customers. Also, the buyout of Axiom Data Science (March 2022) strengthened its advanced climate data analytics solutions offerings. The company spent $854.3 million on acquisitions in the first six months of fiscal 2023 (ended Apr 2, 2023).

TTEK is committed to rewarding its shareholders handsomely with dividend payments. In the first six months of fiscal 2023, TTEK distributed dividends totaling $24.4 million. The quarterly dividend rate was hiked by 13% in May 2023. Such diligent capital-deployment strategies boost shareholders’ wealth.

In the past 60 days, the Zacks Consensus Estimate for Tetra Tech’s fiscal 2023 earnings has been revised 2.2% upward.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Tetra Tech has gained 12.6% compared with the industry’s 10.7% increase in the past year.

Other Stocks to Consider

Here we present some other top-ranked companies from the Industrial Products sector.

Ingersoll Rand Inc. IR presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks.

IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6%. The stock has improved 33.3% in the past year.

Alamo Group Inc. ALG presently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.

In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 59% in the past year.

Parker-Hannifin Corporation PH presently carries a Zacks Rank #2 (Buy). PH delivered a trailing four-quarter earnings surprise of 12.4%, on average.

In the past 60 days, estimates for Parker-Hannifin’s fiscal 2023 (ending June 2023) earnings have increased 5.8%. The stock has increased 26% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report

Parker-Hannifin Corporation (PH) : Free Stock Analysis Report

Ingersoll Rand Inc. (IR) : Free Stock Analysis Report

Alamo Group, Inc. (ALG) : Free Stock Analysis Report

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