Tutor Perini (TPC) is back in focus after expectations for strong year over year earnings growth and cautiously optimistic analyst revisions helped the stock outperform both the S&P 500 and the broader Construction sector.
See our latest analysis for Tutor Perini.
At a share price of $75.09, Tutor Perini has recently seen a 7.29% 1 month share price return and an 11.89% 3 month share price return, while its 1 year total shareholder return is very large. This suggests momentum has been building as investors reassess earnings potential and risk.
If Tutor Perini’s move has caught your attention, this could be a useful moment to scan the broader construction and infrastructure space through aerospace and defense stocks as another pocket of project driven demand.
With revenue of US$5,103.323m, a recent share price of US$75.09 and a value score of 5, the question now is whether Tutor Perini’s recent surge still leaves room for upside or if the market is already fully reflecting the company’s prospects.
Most Popular Narrative: 15.6% Undervalued
With Tutor Perini last closing at US$75.09 versus a narrative fair value of US$89, the current price sits below what this widely followed view considers reasonable, setting up a clear gap between market price and projected fundamentals.
Record backlog growth now at an all-time high of $21.1 billion (up 102% YoY) provides strong visibility and multi-year revenue predictability, as a series of major projects ramp up over the next several years. Sustained federal and state infrastructure funding, particularly for large-scale transit and civil projects (Midtown Bus Terminal, Sepulveda Transit Corridor, Indo-Pacific Defense contracts), is fueling robust project pipeline expansion, favorably impacting both future revenue and long-term earnings growth.
Curious how a large backlog, faster expected revenue growth and a step change in margins translate into that valuation gap? The narrative lays out the exact earnings path, the assumed profitability lift and the future P/E that ties it all together, but keeps one key assumption in plain sight only if you read it in full.
Result: Fair Value of $89 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story can change quickly if large public projects are delayed, or if cost overruns and litigation on new mega contracts reintroduce earnings volatility.
Find out about the key risks to this Tutor Perini narrative.
Build Your Own Tutor Perini Narrative
If you see the numbers differently or simply prefer to test your own assumptions, you can build a custom view in just a few minutes by starting with Do it your way.
A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Tutor Perini.
Looking for more investment ideas?
If Tutor Perini has you thinking differently about your portfolio, do not stop here. Broaden your watchlist now so you do not miss the next opportunity.
- Spot potential value opportunities early by scanning these 873 undervalued stocks based on cash flows that may not yet be fully reflected in market prices.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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