Tutor Perini Stock Soars 64% in 3 Months: Still a Buy Now?

Shares of Tutor Perini Corporation TPC have surged 64.1% over the past three months, outperforming 21.6% growth in the Zacks Building Products - Heavy Construction industry. The stock has also surpassed the broader Construction sector's rally of 7.2% and the S&P 500 index’s 7.6% rise during the same period.

This California-based construction company is gaining from steady contract awards in a market with limited competition. New project awards include higher-margin work, which supports better profitability and helps reduce debt. TPC’s growing backlog provides clear visibility for future revenues and long-term growth. The company is well-positioned to secure more opportunities in the years ahead, with strong bidding activity expected to continue.

TPC’s Past 3 Months’ Price Performance

Tutor Perini has outperformed some other players in the past three months, including EMCOR Group, Inc. EME, MasTec, Inc. MTZ and Granite Construction Incorporated GVA. In the said time frame, EMCOR, MasTec and Granite have gained 26%, 39.2% and 23.8%, respectively.

TPC Stock Trades Above 50 & 200-Day Moving Averages

Technical indicators suggest continued strong performance for Tutor Perini. From the graphical representation given below, it can be observed that the TPC stock is trading above both 50 and 200-day simple moving averages, signaling a bullish trend. The technical strength underscores positive market sentiment, and confidence in its financial health and prospects.

Factors Driving Tutor Perini’s Momentum

Consistent Contract Wins: TPC’s efficient project execution and diversified delivery methods help the company secure consistent contract awards. This supports backlog growth and strengthens long-term prospects in a changing economy. In the first quarter of 2025, the company booked $2 billion in new awards and contract adjustments, reflecting its continued success in securing major project opportunities. This increased the backlog to a record $19.4 billion as of March 31, 2025, marking a year-over-year increase of 94% year over year.

Tutor Perini expects the backlog to stay strong in 2025. The company has already secured more than $500 million in new awards in the second quarter and plans to continue bidding on selective projects to support growth.

Focus on Higher-Margin Projects: TPC is focusing on the execution of higher-margin projects with substantial scopes of work. In the first quarter of 2025, the company’s revenues and earnings increased 19% and 77% year over year, respectively, driven by increased project execution activities on certain newer, higher-margin projects with significant work remaining.

This strategic approach, along with a selective bidding process, is expected to support sustained growth and improved profitability in the coming periods. Tutor Perini’s strong backlog allows the company to carefully choose projects with favorable terms, limited competition and better margin potential.

Efficient Capital Allocation: Tutor Perini continues to prioritize disciplined capital management to strengthen its financial position and support long-term value creation. As of March 31, 2025, TPC’s total debt stood at $406 million, reflecting a 24% reduction from $534 million at the end of 2024. The decrease was primarily led by the early payoff of Term Loan B. The company plans to reassess its capital allocation strategy as it accumulates more cash, with a potential shift toward returning capital to shareholders.

Stable Market Activity to Drive Growth: The company continues to see strong demand for its services, supported by well-funded state, local and federal customers planning large-scale, high-priority infrastructure projects over the next several years. Demand from commercial customers also remains healthy, particularly in sectors like healthcare, education, hospitality, and gaming, wherein new construction and renovation projects are moving forward.

Owing to solid year-to-date performance and sustained market demand, Tutor Perini has increased its 2025 earnings per share (EPS) guidance to $1.60-$1.95 from the earlier mentioned $1.50-$1.90. Tutor Perini expects EPS in 2026 and 2027 to be more than double the expected EPS for 2025.

The company does not currently anticipate significant impacts from recent tariffs or potential changes in federal funding but will continue to monitor these areas. Tutor Perini remains well-placed to capitalize on upcoming infrastructure and commercial opportunities.

TPC Stock Trades at a Discount

Tutor Perini's current valuation looks promising for investors. The stock is trading at a discount compared with the industry peers at present. The company’s forward 12-month price-to-earnings (P/E) ratio is 18.17X, which is down from the industry average of 18.81X.

TPC also trades at a discount to some of its industry peers, such as EMCOR and MasTec, which trade at 19.28X and 24.87X, respectively. Meanwhile, Granite is trading lower at 14.08X.

EPS Trend Favors Tutor Perini

TPC’s earnings estimates for 2025 and 2026 have trended upward in the past 60 days by 14.4% to $1.75 per share and 10.8% to $3.09 per share, respectively. The estimated figures for 2025 and 2026 reflect 155.9% and 76.5% year-over-year surges, respectively. Analysts’ sentiments are likely to have been boosted by the favorable market fundamentals and the company’s upbeat 2025 expectations.

Thoughts on Investment

Tutor Perini’s momentum is supported by a combination of consistent contract awards, a growing backlog and a focus on higher-margin projects. The company’s efficient project execution, selective bidding approach and focus on large-scale opportunities with favorable terms create strong prospects. Tutor Perini’s disciplined capital management and reduced debt levels further strengthen its financial flexibility and position it well for long-term growth.

This Zacks Rank #1 (Strong Buy) stock is well-placed to benefit from sustained infrastructure demand and healthy commercial activity across key sectors. With an improving earnings outlook, a strong pipeline of opportunities and a valuation that appears attractive relative to industry peers, Tutor Perini presents a compelling case for investors looking for long-term growth potential.

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This article originally published on Zacks Investment Research (zacks.com).

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