Tetra Tech (NASDAQ: TTEK), an American consulting and engineering providers firm, noticed its inventory fall greater than 30% in lower than 30 days, as of February finish, amidst rising market anxieties about commerce tensions. Must you purchase this dip? Dip shopping for is a viable technique for high quality shares when broad market circumstances are favorable, supplied that the inventory has a historical past of recovering from dips. Because it seems, not solely does Tetra Tech cross fundamental elementary high quality checks, nevertheless it has additionally returned, on common, 56% in a single 12 months, and 61% as peak return, following such dips traditionally.
Picture by Gerd Altmann from Pixabay
Present Dip Alternative
It has been lower than one month since TTEK final skilled a dip of greater than 30% inside 30 days and since then, it has returned 2.8%. Particulars about historic medians are within the desk beneath:
Previous Knowledge On Restoration From Dips
TTEK had two occasions since 1/1/2020 the place the dip threshold of -30% inside 30 days was triggered
- 61% median peak return inside 1 12 months of dip occasion
- 167 days is the median time to peak return after a dip occasion
- -1.6% median max drawdown inside one 12 months of dip occasion
Tetra Tech Passes Fundamental Monetary High quality Checks
Income progress, profitability, money stream, and steadiness sheet energy have to be evaluated to scale back the danger of a dip being the signal of a deteriorating enterprise scenario.
Dip shopping for, whereas enticing, must be evaluated fastidiously from a number of angles. Such multifactor evaluation is exactly how we assemble Trefis portfolio strategies. If you’d like an upside with a smoother experience than a person inventory, take into account the High-Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.
| Returns | Mar 2025 MTD [1] |
2025 YTD [1] |
2017-25 Whole [2] |
| TTEK Return | 3% | -25% | 268% |
| S&P 500 Return | -3% | -2% | 158% |
| Trefis Bolstered Worth Portfolio | -4% | -5% | 643% |
[1] Returns as of three/10/2025
[2] Cumulative whole returns because the finish of 2016
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
