Tetra Tech Clinches $650M Multiple-Award Contract From USAID
Tetra Tech, Inc. TTEK recently announced that it has secured a $650 million multiple-award contract from the U.S. Agency for International Development (“USAID”). Per the five-year Strengthening Tenure and Resource Rights II (STARR II) deal, the company will be responsible for offering technical support services to USAID. These include the use of mobile technologies, geospatial tools as well as data management processes to document and formalize land tenure and property rights.
Tetra Tech was awarded the first task order worth $25 million under the STARR II contract. Notably, the five-year Integrated Land and Resource Governance task order will assist in the development of targeted solutions that would bolster land and resource rights in Asia, Africa, Latin America and the Middle East. The technical expertise to be offered by the company will help in boosting the legal frameworks and land administration apart from improving land-based investments.
Tetra Tech is currently focusing on high-end consulting and engineering services that are helping it promote its high value and high margin business, thus differentiating it from peers.
In the past three months, this Zacks Rank #2 (Buy) company has returned 29.0%, outperforming the industry’s average growth of 11.6%.
Based on continued execution of its business model, Tetra Tech remains bullish about its growth across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial work and international. The company’s U.S. state and local clients — in both municipal water and smart water services domains — are expected to be its strongest growth drivers for the upcoming quarters.
Moreover, the company believes that lucrative opportunities across the globe will continue to boost its international revenues. It expects international revenues to be driven by infrastructure programs and industrial studies and design work. Also, the previously completed acquisition of Coffey International is expected to boost the top line. Coffey's dominant foothold in the Asia-Pacific region has helped Tetra Tech win several new major programs together with the Australian Department of Defense. Excellent visibility with backlog, consistent increase in budgets and a robust pipeline of infrastructure projects in all the markets should boost the company’s growth.
Other Stocks to Consider
Some other top-ranked stocks from the same space are Luxfer Holdings PLC LXFR, Advanced Emissions Solutions, Inc. ADES and Vertex Energy, Inc VTNR. While Luxfer Holdings sports a Zacks Rank #1 (Strong Buy), Advanced Emissions Solutions and Vertex Energy carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Luxfer Holdings has surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 11.04%.
Advanced Emissions Solutions has outpaced estimates twice in the preceding four quarters with an average earnings surprise of 16.40%.
Vertex Energy has surpassed estimates twice in the trailing four quarters with an average positive earnings surprise of 36.67%.
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