We recently published an article titled, Jim Cramer’s Latest Lightning Rounds: 15 Stocks to Watch. In this article, we are going to take a look at where Tetra Tech, Inc. (NASDAQ:TTEK) stands against other stocks discussed by Jim Cramer during the latest lightning rounds.
Recently on Mad Money, host Jim Cramer stressed the necessity of staying updated on economic indicators, government actions, and industry developments to make informed investment choices. He emphasized that speculation should be approached with the mindset of a “pro” rather than a novice. Cramer mentioned that while he does not oppose speculation, it must be done with an understanding of the risks involved. He remarked:
“Otherwise, if things go south, you’ll be caught playing a game of endless musical chairs, led by me getting a huge number of lightning round calls about some very sketchy outfits that all belong to what I call the hot money segment.”
Cramer provided insight into this hot money segment, describing it as a segment with limited capital that cannot satisfy all the demand. He specifically pointed to China, explaining that the current policies from the Chinese government have created an environment where, for the moment, it seems nearly impossible to incur losses. He elaborated that the government is actively subsidizing stock purchases and promoting buybacks and insider buying through liquidity support.
It has led to significant price movements in the market. When considering investments in Chinese stocks, Cramer advised caution, suggesting that investors should focus on companies capable of withstanding market fluctuations. He pointed out that many people are tempted to buy Chinese auto stocks, especially given their impressive advancements in electric vehicle technology. Nonetheless, he warned that the electric vehicle market is becoming increasingly saturated.
Cramer added that with the limited amount of hot money available, speculative stocks now face competition from cryptocurrencies. He expressed his belief that Bitcoin and Ethereum are the only cryptocurrencies with a good chance of recovery, dismissing most others as “junk”.
He shared that he only invests in these two digital currencies and avoids common stocks tied to the cryptocurrency market, deeming them too risky compared to Bitcoin and Ethereum, which benefit from exchange-traded products backing them. Cramer concluded by mentioning that speculation should be done wisely, saying, “With any speculative trade, there’s a beginning and an endpoint.”
Our Methodology
For this article, we compiled a list of 15 stocks that were mentioned by Jim Cramer during the lightning rounds of his episodes of Mad Money on October 4 and October 7. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Cramer Says Tetra Tech, Inc. (NASDAQ:TTEK) Has Been A ‘Great One’
Tetra Tech, Inc. (NASDAQ:TTEK)
Number of Hedge Fund Holders: 37
Cramer talked about the company and stated:
“Tetra Tech is remarkable and even at 38 times earnings, I gotta tell you, I see people still buying. It doesn’t seem to slow them down. I would take a breather, but it’s been a great one.”
Tetra Tech, Inc. (NASDAQ:TTEK) is a consulting and engineering company that provides a wide range of services across the globe. It is focused on data collection, analysis, and information management. Additionally, the company offers project management and operations maintenance.
The company offers services and solutions related to climate change adaptation, energy management, and greenhouse gas assessment and reduction. It is actively involved in environmental remediation, reconstruction services, and industrial water treatment, positioning itself as a key player in addressing a variety of environmental challenges.
Over the past year, the stock is up by over 56%. Cramer went on to say, “… That is infrastructure and it’s just kicking butt. A lot of people wish they had that stock.”
Recently, Tetra Tech (NASDAQ:TTEK) announced that Northern Ireland Water selected the company, including its RPS operations, for a framework contract valued at up to £800 million. The 8-year agreement will aid in the sustainable development of essential water and wastewater infrastructure projects across Northern Ireland. The company’s engineers and scientists will play a vital role in managing programs aimed at enhancing climate resilience and improving service delivery for customers of NI Water.
Further emphasizing its capabilities, the company also secured a $249 million contract from the U.S. Army Corps of Engineers (USACE) for environmental assessment and design services at various facilities throughout the United States.
It is a 7-year contract that allows the company’s experts to engage in a wide range of environmental services, including the formulation of water resource management plans, ecosystem assessment and protection, and the design of sustainable building elements that optimize water and energy efficiency.
Additionally, Tetra Tech (NASDAQ:TTEK) showed its diverse capabilities when it was awarded a $39.3 million contract by the U.S. Agency for International Development (USAID). The single-award contract focuses on increasing gender equality and enhancing women’s economic empowerment in sectors such as water, power, infrastructure, transportation, and information and communications technology on a global scale.
TimesSquare Capital Management stated the following regarding Tetra Tech, Inc. (NASDAQ:TTEK) in its Q2 2024 investor letter:
“Many of our Industrial positions provide necessary business-to-business operational services, highly technical components, automation & efficiency improvements, or essential infrastructure services. Tetra Tech, Inc. (NASDAQ:TTEK) provides consulting and engineering services. Its stock price rose 11% after they reported fiscal second quarter revenues that surpassed Street estimates and increased forward guidance. A key development in the quarter was an FDA ruling imposing a very strict contamination limit on polyfluoroalkyl (PFAS) chemicals in drinking water. We believe PFAS analysis, monitoring and remediation can be an important business driver for Tetra Tech for several years.”
Overall, TTEK ranks 6th on our list of stocks discussed by Jim Cramer during the latest lightning rounds. While we acknowledge the potential of TTEK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TTEK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
