A small oil services firm, TETRA Technologies (NYSE:TTI) recently popped up on my radar. This cheap energy play has picked up several positive catalysts recently and looks poised to head higher.
Recent positives for TTI:
- Wunderlich just initiated the shares as a "Buy" and put a $10 price target on TETRA.
- Insiders have been active buyers recently. Numerous insiders made purchases since May, including a $165K buy by the CEO in early August.
- The stock has put in a solid bottom at these levels over the past few months (See Chart).
"TETRA Technologies operates as a diversified oil and gas services company. The company operates in three divisions: Fluids, Production Enhancement, and Offshore." (Business description from Yahoo Finance)
4 additional reasons TTI could have significant upside from $6.50 a share:
- The seven analysts that follow the stock have a $11 a share price target on the stock, more than 50% above the current stock price.
- The stock is selling near the bottom of its five year valuation range based on P/B, P/S and P/CF. The company is selling at just 94% of book value.
- TTI is selling at just 7.6 times forward earnings, a discount to its five year average (12.5).
- The stock is priced with a five year projected PEG of under 1 (.72), analysts expect 15% revenue growth in FY2013 and consensus earnings estimates for 2013 fiscal year have ticked up over the last month.