Value stock in Focus_Tetra Tech Inc. (TTEK)

Company Profile:

Tetra Tech, Inc. provides consulting, engineering, program management, construction management, and technical services for water, environment, energy, infrastructure, and natural resources sectors. The company operates in three segments: Engineering and Consulting Services (ECS); Technical Support Services (TSS); and Remediation and Construction Management (RCM). The company offers its services to the U.S. federal, state, and local government agencies, as well as to commercial and international clients. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.

Recent News:

On Wednesday, July 29, 2015, after market close, Tetra Tech intends to announce its third quarter 2015 results. On Thursday, July 30, 2015, at 8:00 a.m. Pacific Time, Tetra Tech plans to host a conference call to further present and discuss the Company’s financial results and forward outlook.

Most recently Tetra Tech, Inc. reported actual earnings of $0.32 per share for the quarter ending on 2015-03-31. The actual reported number was $0.01 away from what analysts had expected.

Wall Street sell-side research firms who cover Tetra Tech, Inc. have given the stock a one-year price target of $29.187. The most bullish firm sees the stock reaching $31 within the year while the most conservative has their price target set at $27.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TTEK’s strengths can be seen in its robust solvency and great efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 52.42. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Tetra Tech Inc. (TTEK) a STRONG BUY.