Tutor Perini (TPC): Time to Buy This Earnings Momentum Stock

Tutor Perini (TPC) the good news and bad news for this stock is the same. 

The good news is that the AI revolution has led to an explosion in demand for new data centers to handle all the increased computing power necessary. This has been a boon to all specialty construction firms like TPC leading to explosive earnings momentum and a soaring share price. 

The bad news is that all things AI are going through a round of steep profit taking. This has shares falling from a recent high of $77 to a notch under $60. 

Back to the good news…this is one of the best earnings momentum stories around that truly sparkles in the light of the Zen Ratings. And now we have a great opportunity to buy this attractive dip to enjoy even better returns as TPC excels in the future.  

Let’s take it from the top. 

TPC is in the Engineering & Construction industry which is A rated overall. The main reason for that was shared above with so many of these firms seeing impressive growth thanks to the AI revolution. Plus many are benefiting from fresh investments to enhance the US power grid which is quite antiquated. 

The real wake up call on these shares happened in May when they had a nearly 500% earnings beat that pointed out the glorious growth path ahead. This was followed up by 2 more earnings reports averaging 20% beats. The most recent of which saw earnings estimates soar from $4.24 to $5.01 for next year. 

This kind of earnings momentum doesn't grow on trees and thus should be incredibly attractive to anyone interested in growth. And for those focused on value, it means that shares are now only trading for a PE of 12…about half of the market average these days. 

Drilling down into the Zen Ratings, indeed this is an A rated (Strong Buy) stock scoring well for Value, Momentum, Safety and Growth. 

It's the Growth aspect that deserves our special attention as TPC is in the top 1% of all stocks we analyze. This measure of earnings consistency GREATLY increases the odds of more earnings beats and raises in the future that should propel the share price even higher. 

Wall Street is also taking notice. This is why the average target is $82 with a street high of $86 from Steven Fisher @ UBS (top 9% of all analysts in terms of stock picking performance). 

I am saving the best for last. In the construction field they often talk about the backlog of orders. This is future projects already agreed to that have not yet been completed. This gives GREAT earnings visibility into the future. 

Meaning the $5.01 earnings estimate for TPC is likely a very sure thing given what their backlog points to. And if the beat and raise tradition keeps up it will be even higher. 

This gives great credence to the current Wall Street price targets. However, more earnings beats in the quarters ahead could easily propel it to $100+ next year. 

Add it all up and you understand why I am pounding the table to buy TPC shares today on this timely dip. 

What To Do Next?

Tutor Perini (TPC) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each of these 20 stocks was selected based on my stringent process that helps pinpoint those with 100%+ upside potential.

To learn more about my investment process…and to see my current top 20 stock recommendations…then just click the link below: 

Discover the Zen Investor portfolio & Top 20 Stocks Now > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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