Shares of global consulting and engineering services provider Tetra Tech, Inc. (TTEK) were up 58% over the past six months. TTEK recently delivered a better-than-estimated performance for the fourth quarter, driven by robust demand for its high-end water and environmental consulting services.
Additionally, the company raised its dividend by 18% (payable on December 20), while also increasing its stock buyback program by $400 million. With these positives in mind, let us take a look at the changes in TTEK’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, TTEK’s top two risk categories are Legal & Regulatory and Production, contributing 28% and 26% to the total 50 risks identified, respectively. In its recent annual report, the company has changed one key risk factor under the Macro & Political risk category.
TTEK highlighted that its operation results could be negatively impacted by health outbreaks such as the COVID-19 pandemic, which has created significant volatility, uncertainty, and economic disruption. Additionally, governments across the globe have implemented emergency relief programs to combat the economic impact of COVID-19. However, the long-term impacts of such spending are uncertain and may lead to future budgetary restrictions for TTEK’s government clients. (See Insiders’ Hot Stocks on TipRanks)
Compared to a sector average of 13%, TTEK’s Production risk factor is at 26%.
Wall Street’s Take
Consensus on the Street is a Strong Buy based on 4 Buys and 1 Hold. The average Tetra Tech price target of $193.40 implies a potential upside of 2.4% for the stock.
Related News:
Visa Concerned Over India’s Backing for Rival RuPay
Li Auto Rises 7.7% on Q3 Revenue Beat
Mastercard, Jeeves Join Hands to Make Credit Access Easy for Mexican Businesses
