Miller Value Deep Value Strategy's Views on Tutor Perini Corporation (TPC)

Miller Value Partners, an investment management company, released its “Deep Value Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of the year mirrored 2020, with tariff and Covid fears driving the VIX Index over 50 and the U.S. Economic Policy Uncertainty Index reaching an all-time high. In March 2025, the Economic Uncertainty Index peaked at 725, over 50% higher than in 2020. By April 8th, equity markets hit bottom and began recovering as both the Economic Policy Uncertainty and VIX Index started to decline. In the quarter, the Deep Value strategy had a -0.95% drawdown compared to +3.02% return for the S&P 1500 Value Index and +2.52% return for the S&P 600 Value Index. Year-to-date, the strategy's net returns are -13.63% vs +2.81% and -7.65%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Miller Value Deep Value Select Strategy highlighted stocks such as Tutor Perini Corporation (NYSE:TPC). Headquartered in Sylmar, California, Tutor Perini Corporation (NYSE:TPC) is a construction company. On August 7, 2025, Tutor Perini Corporation (NYSE:TPC) stock closed at $55.07 per share. One-month return of Tutor Perini Corporation (NYSE:TPC) was 12.43%, and its shares gained 189.69% of their value over the last 52 weeks. Tutor Perini Corporation (NYSE:TPC) has a market capitalization of $2.905 billion.

Miller Value Deep Value Select Strategy stated the following regarding Tutor Perini Corporation (NYSE:TPC) in its second quarter 2025 investor letter:

"Our second largest positive contributors was Tutor Perini Corporation (NYSE:TPC), whose shares were up 83%. We initially purchased TPC in the Fall of 2022, near $7/share, a deep discount to tangible book value. The Covid outbreak caused a significant delay in larger civil contracts, weighing on the company’s most profitable segment margins, causing a multi year earnings trough. Over the past two years, management has successfully rebuilt the company pipeline, enhanced the balance sheet through significant debt reduction and is on track to return the company to normalized profitability. With a portfolio holding return over 400%, TPC is currently trading over two times book value and approaching 10x normalized earnings. We recently exited the position and have recycled capital adding to holdings that have recently underperformed the portfolio and have greater long-term embedded return potential."

Tutor Perini Corporation (NYSE:TPC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Tutor Perini Corporation (NYSE:TPC) at the end of the first quarter, which was 25 in the previous quarter. While we acknowledge the potential of Tutor Perini Corporation (NYSE:TPC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Tutor Perini Corporation (NYSE:TPC) and shared the list of best performing mid cap stocks so far in 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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