Stock Price & Analysis

Based on the analysis of TTEK's stock performance, insider activity, and market trends, it is recommended to hold the stock as it currently appears undervalued with potential for long-term growth despite short-term risks.

Price Prediction for TTEK Stock in 2025

TTEK stock is expected to trade between $28.45 and $31.80 in 2025, with a potential upside to $35.00 if global infrastructure demand strengthens.

The stock is currently trading near its Fibonacci pivot level of $29.38, with resistance at $30.30 and support at $28.45.

This prediction is based on technical analysis, recent earnings performance, and the company's strong position in global water and infrastructure projects.

The S1 support level for TTEK Stock is $28.36 ,The R1 resistant level for TTEK Stock is $30.21.

As of the end of day on 2025-03-13, the price of TTEK Stock was $28.68.

The target price for TTEK Stock according to analyst rating is 42.67, with the highest price target at 49.00 and the lowest at 34.00. Analysts have a Moderate Buy rating on TTEK Stock overall.

The market cap of TTEK is $7.7B.

Analysis and Insights

Valuation Metrics:

Tetra Tech (TTEK) appears overvalued based on its current valuation metrics. The stock has a trailing P/E ratio of 37.44 and an EV/EBITDA of 18.62, both of which are higher than industry averages. The price-to-sales ratio is 2.39, and the price-to-book ratio is 6.24, indicating a premium valuation compared to its peers.

Financial Performance:

• Revenue Growth: TTEK has shown consistent revenue growth, with Q1 2025 revenues reaching $1.2 billion, up 17% year-over-year.
• Net Income Decline: Despite revenue growth, net income dropped significantly to $747,000 in Q1 2025, raising concerns about profitability.
• Margin Compression: Gross margin has declined to 18.5%, and net margin is at 0.06%, reflecting operational challenges.

Market Sentiment and Analyst Views:

• Analyst Downgrades: Maxim Group downgraded TTEK to "Hold" from "Buy," citing delays in USAID projects and federal spending pauses.
• Insider Activity: Insiders have sold shares recently, and institutional investors have reduced their holdings, signaling cautious sentiment.

Technical Analysis:

The stock is in a bearish trend with an RSI of 33.32, indicating oversold conditions. Support levels are at $26.92 (Fibonacci S3), and resistance is at $31.77 (Fibonacci R3).

Conclusion:

TTEK's high valuation, declining profitability, and negative sentiment suggest it may be overvalued. However, its strong revenue growth and potential recovery in federal projects could stabilize the stock. Investors should monitor these factors closely.

Tetra Tech, Inc. is a global provider of consulting and engineering services that is focused on water, environment, sustainable infrastructure, renewable energy and international development. The Company is Leading with Science to provide solutions for its public and private clients. The Company operates through its two segments: government services group (GSG) and commercial/international services group (CIG). Its GSG segment provides consulting and engineering services primarily to United States (U.S.) government clients and development agencies worldwide. The Company's CIG segment primarily provides consulting and engineering services to U.S. commercial clients and international clients that include both commercial and government sectors. Its CIG segment provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific, the United Kingdom, as well as Brazil and Chile.

TTEK stock is predicted to reach approximately $45 by 2030, driven by steady growth and positive market conditions. However, if the company underperforms, the price may only rise slightly to around $35. In a bearish scenario, it could drop to $25, depending on industry challenges and company-specific factors.

TTEK has a total of 27000 employees.