Tetra Tech, Inc. TTEK recently clinched a $300-million multiple-award contract from the National Aeronautics and Space Administration (“NASA”). Per the five-year contract, Tetra Tech will offer engineering and architectural services for probing, designing and implementing remedial actions at the NASA Kennedy Space Center and Cape Canaveral Air Force Station, based in Florida.
Notably, Tetra Tech will be responsible for providing engineering and environmental assessment services. These include regulatory documentation, remedial design, contaminant investigation, as well as groundwater and soil remediation. As a matter of fact, the latest deal will further enhance the company’s long-standing partnership with NASA.
Existing Business Scenario
In a bid to maximize growth prospects, Tetra Tech is currently focusing on high-end consulting and engineering services that are helping it promote its high value and high margin business. This is differentiating it from other players in the market.
In the past month, this Zacks Rank #2 (Buy) company has returned 9.8%, outperforming the industry’s average growth of 6.1%.
Based on continued execution of its business model, Tetra Tech remains bullish about its growth prospects across all four client sectors, namely, U.S. federal, U.S. state and local, the U.S. commercial and international. The company’s U.S. state and local clients — in both municipal water and disaster response recovery services domains — are expected to be a strong growth driver for the upcoming quarters.
Moreover, the company believes lucrative opportunities across the globe will continue to boost its international revenues. In fiscal 2019, Tetra Tech expects a 10% growth rate in its international client base, particularly in Canada and Asia Pacific region. Notably, revenue growth across these regions will be driven by infrastructure programs as well as industrial consulting and design work. In addition, higher infrastructure-related spending in Australia is anticipated to be key catalysts for international revenues in fiscal 2019.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Industrial Products sector are Axon Enterprise, Inc AAXN, Roper Technologies, Inc. ROP and Sharps Compliance Corp SMED. While Axon Enterprise sports a Zacks Rank #1 (Strong Buy), Roper Technologies and Sharps Compliance carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 391.67%.
Roper Technologies outpaced estimates in each of the preceding four quarters, the average earnings surprise being 4.96%.
Sharps Compliance’s earnings surprise in the last reported quarter was a positive 66.67%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
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
Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report
Sharps Compliance Corp (SMED) : Free Stock Analysis Report
Axon Enterprise, Inc (AAXN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research