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Annotated article summary from this weekend's Barron's. Receive all our Barron's summaries by signing up here:

More Gains on Tap at Tetra Tech by Christopher C. Williams

Summary: Engineering and consulting firm Tetra Tech (NASDAQ:TTEK) gets 85% of its revenue from water services, such as cleaning up polluted rivers and building dams. Last Tuesday shares hit a 52-week high of $21.78, giving them a current P/E of 33x earnings. Thanks to a constant flow of new contracts, solid quarterly results and investors' appetite for water stocks, the stock could climb much higher -- into the mid 20s within the year. Analysts are poised to raise yearly estimates when Tetra reports results for the quarter ended March 31 this Wednesday. Estimates on the Street are at 18 cents a share, up from last year's 14. The company is not stopping at water, and is making purchases in the mining, alternative energy and automotive sectors, as it hopes to lift the high-end of its guidance for the year, from $0.76/share to $0.80. "Tetra Tech is building momentum, and the level of investor enthusiasm will likely build as the year progresses," predicts Debra Coy of Janney Montgomery Scott.

Related: Tetra Tech Acquires The Delaney Group to Expand Alternative Energy Capabilities [Business Wire] • Tetra Tech: Strong Market, Overlooked StockWater Services Interview: Tetra Tech CEO Talks About His Company (TTEK)

TTEK 1-yr chart
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Source: Tetra Tech: More Upside on Tap - Barron's