Tuesday's IBD 50 Stocks To Watch pick is Tetra Tech, which is holding above its latest buy point despite the market sell-off of the past few days, placing this leader in buy range. That makes Tetra one of the best stocks to buy and watch.
Tetra Tech is in a wide variety of global markets. It provides clean water equipment and systems, along with waste management, resource management, infrastructure and clean energy solutions.
On July 31, Tetra Tech reported strong fiscal third-quarter earnings and sales results, raised its financial outlook and announced a 5-for-1 stock split. Earnings grew 23% to $1.59 per share on revenue of $1.34 billion. Sales climbed 11% vs. the year-ago period.
"Tetra Tech continued our strong performance through the third quarter with increasing demand for our high-end water, environment, and sustainable infrastructure services, resulting in record quarterly revenue and an all-time high backlog," Chief Executive Dan Batrack said in the earnings news release.
Batrack continued, "With increased profitability and record backlog, we are raising our full-year guidance for net revenue and earnings, which represents forecasted EPS growth of 23% for fiscal 2024."
Earnings are expected to jump another 18% in fiscal-year 2025, according to IBD MarketSurge.
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Stocks To Buy And Watch: Tetra Tech Stock In Buy Range
On Aug. 1, Tetra Tech shares surged above a 221.40 buy point in a flat base, according to MarketSurge pattern recognition. Despite two days of losses, shares are holding above that entry and in the 5% buy range that goes up to 232.47. Shares added 1.2% early Tuesday.
The company's relative strength line hit a new high on the breakout day, a bullish signal that confirms the stock as a market leader. The RS line compares a stock's price performance vs. the S&P 500.
Due to solid earnings growth in recent quarters and strong price performance year to date, Tetra Tech stock boasts a perfect 99 IBD Composite Rating, according to IBD Stock Checkup.
Keep in mind that market risk is high right now, so investors should be playing more defense. Still, Tetra is holding up well, placing it among the best stocks buy and watch.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Palantir Technologies | 26.57 | Handle entry | |
| MercadoLibre | 1,792.05 | Cup with handle | |
| Ryan Specialty | 61.29 | Flat base |
Source: IBD Data As Of Aug. 6
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
