Considering the Drop in TTEK Stock: Is It a Good Time to Invest?
Tetra Tech: The engineering and consulting powerhouse, as represented by NASDAQ ticker symbol TTEK, witnessed a substantial drop of more than 30% within a single month by the end of February. This decline was influenced by escalating trade tension concerns.
Buying Opportunity or Not? Dipping into quality stocks like Tetra Tech during a market downturn can be a shrewd move when overall market conditions remain positive, provided the company has proven its recovery capabilities. Amazingly, Tetra Tech aces basic fundamental quality verifications and has even delivered an average return of a whopping 56% over the past year, with a peak return of 61% following previous dips.
Recent Dip Insight
It's been close to a month since TTEK slid by more than 30% in just 30 days, and in that brief span, it's managed to rebound by 2.8%. Check out the table to understand historical median values:
Historical Dip Recovery Analysis
Since 1/1/2020, Tetra Tech has encountered two scenarios where it slid by over 30% in 30 days.
- 61% is the median peak return within a single year following a dip event
- 167 days represent the median time it takes to hit that peak return post-dip
- -1.6% is the median maximum drawdown within a year after a dip event
Tetra Tech's Financial Quality Check
Analyzing revenue growth, profitability, cash flow, and balance sheet strength is vital to ensure a dip doesn't signal a weakening business position.
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- In light of Tetra Tech's (TTEK) recent dip of over 30% in a month, and the subsequent rebound of 2.8%, it's interesting to note that historically, Tetra Tech has demonstrated a strong recovery, with a median peak return of 61% following a dip event.
- Moreover, the company's resilience is evident in its profitability, as it has delivered an average return of 56% over the past year, with a peak return of 61% following previous dips.
- Given the potential for further profitability and Tetra Tech's consistent performance in the face of market volatility, some analysts might suggest considering the purchase of Tetra Tech stock, a decision that could be enhanced through a risk-optimized quality portfolio strategy like Trefis.