Why Tetra Tech Inc. (TTEK) Crashed on Monday

We recently compiled a list of the The 10 Worst-Performing Stocks on Monday. In this article, we are going to take a look at where Tetra Tech Inc. (NASDAQ:TTEK) stands against the other stocks.

Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.

The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.

On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.

Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.

An energy executive observing a wind turbine farm from a remote location.

Tetra Tech Inc. (NASDAQ:TTEK)

Tetra Tech Inc. (NASDAQ:TTEK) shares dropped 7.04 percent to $34.21 on Monday, mirroring the broader market’s decline. The stock’s slide came on the heels of a recent dip to a new 52-week low last week.

Despite a strong earnings performance and a robust dividend program that has delivered 11 consecutive years of increases, analysts believed that Tetra Tech’s valuation was already stretched, signaling that the stock may have already been oversold.

Just recently, Tetra Tech reported a 16-percent increase in its revenues for the first quarter of fiscal year 2025, settling at $1.42 billion, surpassing analyst estimates. The company also raised the high end of its fiscal 2025 earnings guidance.

In the same period, Tetra Tech posted adjusted earnings per share of 35 cents, exceeding the analyst consensus of 34 cents, with net revenues—excluding subcontractor costs—rising 18 percent year-on-year at $1.2 billion.

Overall TTEK ranks 5th on our list list of the worst performing stocks on Monday. 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.