Leading technical services provider Tetra Tech, Inc. (TTEK) recently announced that it has received a $243 million contract from the National Guard Bureau Environmental Engineering Support Services for providing diverse services in the U.S. and its surrounding areas. The contract, valid for one base year, can be extended up to two option years.
The multiple-award contract requires Tetra tech to provide services such as, Environmental Engineering, Professional and Technical Support for the U.S. defense bases like Air National Guard and the Army National Guard.
Apart from providing these services, the contract also includes restoration and cleaning up of the area after necessary assessments. Tetra Tech will also need to comply with environmental norms during the course of the project and take steps to prevent pollution.
Tetra Tech is a leading player in providing services like consulting, engineering and program management. It also supports commercial clients by offering integrated solutions for environmental services, water, energy, infrastructure and natural resources. This contract will strengthen the company’s federal work, which contributed about 26% of the total revenue in the last-reported quarter (first-quarter 2014).
This apart, the company operates globally and serves public and private clients. As demand for water and natural resources have increased, governments all around the world have started to take up environmentally sound initiatives. Hence, the industry looks modestly promising for the company’s growth.
However, the news failed to cheer the investors and the company’s share prices inched down 0.7% on Feb 11, following the company’s announcement on Monday (Feb 10).
Tetra Tech currently carries a Zacks Rank #2 (Buy). However, other stocks in the same industry that are worth considering include Sharps Compliance Corp. (SMED), Heritage-Crystal Clean, Inc (HCCI) and Pure Cycle Corporation (PCYO). While Sharps Compliance carries a Zacks Rank #1 (Strong Buy), Heritage-Crystal and Pure Cycle Corporation both carry a Zacks Rank #2.