Why Tetra Tech (TTEK) is a Top Growth Stock for the Long-Term

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score identifies attractive and discounted stocks using various financial ratios such as P/E and Price/Sales [4] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings and cash flow [5] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate shifts [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [8] - There are typically over 800 top-rated stocks available, making it essential for investors to utilize Style Scores to narrow down their choices [9] - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering 3 (Hold) stocks with similar scores for potential upside [10] Company Spotlight: Tetra Tech (TTEK) - Tetra Tech is a leading provider of consulting and technical services, focusing on water, environmental, and alternative energy solutions for a diverse client base, including government agencies [12] - TTEK holds a 3 (Hold) Zacks Rank and has a VGM Score of A, indicating strong growth potential with a forecasted year-over-year earnings growth of 19.8% for the current fiscal year [13] - The company has seen a recent upward revision in earnings estimates, with the Zacks Consensus Estimate increasing by $0.04 to $1.51 per share, alongside an average earnings surprise of +7.1% [13][14]