Shares of Tutor Perini Corporation (TPC) hit a new 52-week high of $32.52 during intraday trading before closing lower at $31.99 on Jul 1. The leading civil and building construction company has delivered a robust 1-year return of about 76.95%, outperforming the S&P 500 return of 25.46%.
Over the past 52 weeks, Tutor Perini’s share price has ranged from a 52-week low of $18.02 on Jul 10, 2013, to a 52-week high of $32.51 on Jul 1, 2014. Average volume of shares traded over the last 3 months is approximately 253K. Tutor Perini has a market cap of $1.55 billion and long-term estimated earnings per share growth rate of 12%.
What's Driving Tutor Perini Upward?
Shares of Tutor Perini started escalating following its strong first-quarter results on May 8. Adjusted earnings per share were 33 cents in the quarter, a 6% year-over-year increase. Tutor Perini delivered a solid earnings surprise, beating the Zacks Consensus Estimate of 20 cents by 65%. Volume increase in the Civil segment led to the year-over-year improvement.
Tutor Perini maintained its earnings per share guidance range of $2.20 to $2.40 in 2014 and revenues guidance in the range of $4.5–$5 billion. Tutor Perini will benefit from the strong backlog which is currently at the highest level since 2008. The company continues to win contracts and has the prospects of winning future awards, given its significant volume of pending awards. Building segments and margins are also expected to grow over the next year, driven primarily by the additional phases of the Hudson Yards projects.
Shares of Tutor Perini found further support in the company’s June 9 announcement, that it’s Perini-Kiewit-Cashman Joint Venture has succeeded in a long-standing dispute with the Massachusetts Department of Transportation (MassDOT) regarding the Central Artery/Tunnel Project in Boston
On Jun 12, Tutor Perini announced that it has secured a contract worth $255 million from Florida East Coast Realty, LLC. The project includes the construction of Panorama Tower at 1101 Brickell Avenue in Miami, FL.
Other Stocks to Consider
Tutor Perini currently carries a short-term Zacks Rank #1 (Strong Buy). Some other stocks worth considering in the sector include Gibraltar Industries, Inc. (ROCK), Simpson Manufacturing Co., Inc. (SSD) and Primoris Services Corporation (PRIM). While Gibraltar Industries and Simpson Manufacturing hold the same rank as Tutor Perini, Primoris holds a Zacks Rank #2 (Buy).
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