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Strength Seen in Tetra (TTEK): Can Its 8.4% Jump Turn into More Strength?

Tetra Tech (TTEK) shares ended the last trading session 8.4% higher at $136.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.9% loss over the past four weeks.

Tetra Tech’s rally is primarily bolstered by strength in its businesses associated with the state, commercial and international clients. Also, water & environment, international development and climate-change projects have been aiding the company for some time. A robust demand environment across the end markets coupled with a strong backlog level bodes well for the company.

This consulting and engineering services company is expected to post quarterly earnings of $1.05 per share in its upcoming report, which represents a year-over-year change of +10.5%. Revenues are expected to be $713.85 million, up 11.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Tetra, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TTEK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Tetra is a member of the Zacks Pollution Control industry. One other stock in the same industry, Sharps Compliance (SMED), finished the last trading session 5.8% higher at $3.30. SMED has returned -23.9% over the past month.

Sharps Compliance's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. Compared to the company's year-ago EPS, this represents a change of -82.4%. Sharps Compliance currently boasts a Zacks Rank of #4 (Sell).

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