Trade-Ideas LLC identified

Tetra Tech

(

TTEK

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Tetra Tech as such a stock due to the following factors:

  • TTEK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.9 million.
  • TTEK has traded 14.4030000000000004689582056016661226749420166015625 options contracts today.
  • TTEK is making at least a new 3-day high.
  • TTEK has a PE ratio of 44.
  • TTEK is mentioned 0.71 times per day on StockTwits.
  • TTEK has not yet been mentioned on StockTwits today.
  • TTEK is currently in the upper 20% of its 1-year range.
  • TTEK is in the upper 35% of its 20-day range.
  • TTEK is in the upper 45% of its 5-day range.
  • TTEK is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on TTEK:

Tetra Tech, Inc. provides consulting and engineering services worldwide. It operates through two segments, Water, Environment and Infrastructure (WEI); and Resource Management and Energy (RME). The stock currently has a dividend yield of 1.2%. TTEK has a PE ratio of 44. Currently there are 5 analysts that rate Tetra Tech a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Tetra Tech has been 336,100 shares per day over the past 30 days. Tetra Tech has a market cap of $1.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.10 and a short float of 3% with 5.20 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Tetra Tech as a

buy

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • TTEK's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TTEK has a quick ratio of 1.82, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 332.98% to $23.62 million when compared to the same quarter last year. In addition, TETRA TECH INC has also vastly surpassed the industry average cash flow growth rate of 0.72%.
  • TETRA TECH INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, TETRA TECH INC reported lower earnings of $0.62 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($1.85 versus $0.62).
  • TTEK, with its decline in revenue, slightly underperformed the industry average of 0.7%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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