Company Overview - Tutor Perini Corporation (TPC) has recently reported a significant increase in backlog, indicating strong demand for its services in the construction sector [1] - The company has demonstrated superior expertise in handling mega projects compared to its competitors, positioning it favorably in the market [1] Financial Performance - TPC's quarterly earnings per share (EPS) results exceeded expectations, contributing to a rise in the stock price [1] - The company has a history of stable financial performance, with a focus on net income generation and decent free cash flow (FCF) margins [1] Market Position - The construction industry is witnessing a competitive landscape where few companies possess the necessary skills and experience to manage large-scale projects effectively [1] - TPC's ability to secure and manage mega projects enhances its competitive edge and market share [1]

Market Overview - U.S. stock markets have continued to rise in early August despite trade uncertainties and the Federal Reserve's indecision regarding interest rate cuts in 2025 [1][2] - The outcome of the Fed's annual Jackson Hole Symposium, scheduled for August 21-23, is anticipated to be significant [2] Stock Performance - Few stocks have demonstrated price strength, with a focus on those recently experiencing a bull run [3] - Five highlighted stocks include Modine Manufacturing Co. (MOD), Tutor Perini Corp. (TPC), Kiniksa Pharmaceuticals International plc (KNSA), Life360 Inc. (LIF), and Euroseas Ltd. (ESEA) [3] Stock Screening Criteria - Stocks must show a percentage change in price greater than zero over the last four weeks and greater than 10% over the last twelve weeks [5] - Zacks Rank 1 (Strong Buy) and an average broker rating of 1 are also key indicators of potential performance [6] - Stocks must be trading at a minimum price of $5 and be near their 52-week highs, with a current price/52-week high-low range greater than 85% [7] Individual Stock Highlights - **Modine Manufacturing (MOD)**: Stock price increased by 46.1% in four weeks, with an expected earnings growth rate of 14.3% for the current year [8][10] - **Tutor Perini (TPC)**: Stock price surged 14.3% in four weeks, with an expected earnings growth rate exceeding 100% for the current year [14] - **Kiniksa Pharmaceuticals (KNSA)**: Stock price climbed 13.7% in four weeks, with expected earnings growth over 100% for the current year [15] - **Life360 (LIF)**: Stock price advanced 8.3% in four weeks, with expected earnings growth over 100% for the current year [17] - **Euroseas (ESEA)**: Stock price gained 2.8% in four weeks, with an expected earnings growth rate of 4% for the current year [19]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling even higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by focusing on key metrics [2] Group 2: Tutor Perini (TPC) Performance - Tutor Perini currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [3][4] - TPC shares have increased by 23.57% over the past week, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 5.23% [6] - Over the past quarter, TPC shares have surged by 56.48%, and by 194.79% over the last year, compared to the S&P 500's gains of 13.05% and 20.74% respectively [7] Group 3: Trading Volume and Earnings Outlook - TPC's average 20-day trading volume is 790,686 shares, indicating a bullish trend when combined with rising stock prices [8] - In the past two months, one earnings estimate for TPC has increased, raising the consensus estimate from $1.75 to $2.72 [10] - The positive earnings outlook and price movement contribute to TPC's strong performance and high Momentum Score [9][12]

Core Insights - Tutor Perini Corp. (TPC) reported strong earnings, exceeding expectations and raising full-year guidance due to a record construction backlog [1][2][8] Financial Performance - In Q2 2025, Tutor Perini reported earnings of $1.41, significantly above the Zacks Consensus Estimate of $0.29, representing a 386.2% beat [2] - Revenue increased by 22% year-over-year to $1.37 billion, driven by growth across all segments, particularly in civil and building projects [3] - The Civil segment achieved its highest revenue ever for both Q2 and the first half of 2025 [4] Backlog and New Awards - The company secured $3.1 billion in new awards and contract adjustments in Q2, leading to a record backlog of $21.1 billion, up 102% year-over-year [5] - Significant new projects include the $1.87 billion Midtown Bus Terminal Replacement in New York and a $538 million healthcare project in California [6] Guidance and Analyst Sentiment - Tutor Perini raised its full-year earnings guidance to a range of $3.65 to $3.95, up from $2.45 to $2.80, reflecting confidence in its performance [8] - Analysts have also become more bullish, with the Zacks Consensus estimate increasing to $2.72 from $1.74, although still below the company's guidance [9][10] Stock Performance - Shares of Tutor Perini have reached 5-year highs, outperforming the S&P 500, and are considered attractively valued with a price-to-sales (P/S) ratio of 0.6 [9][11][13]

Core Viewpoint - Investors are encouraged to consider Tutor Perini (TPC) due to solid improvements in earnings estimates and positive short-term price momentum [1][8]. Earnings Estimates - Analysts have shown growing optimism regarding Tutor Perini's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $0.66 per share, reflecting a significant increase of +134.4% year-over-year. Over the last 30 days, the Zacks Consensus Estimate has risen by 55.29% with no negative revisions [5]. - For the full year, Tutor Perini is projected to earn $2.72 per share, indicating a year-over-year change of +186.9%. The trend in estimate revisions remains positive, with one estimate moving up and no negative revisions [6]. Zacks Rank - Tutor Perini has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable indicator for investors to make informed decisions [7]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [7]. Stock Performance - Tutor Perini shares have increased by 15.2% over the past four weeks, indicating strong investor confidence in the company's earnings growth prospects [8].

Group 1: Tutor Perini Corporation (TPC) - Tutor Perini Corporation is a construction company with a Zacks Rank 1, and its current year earnings estimate has increased by 55.4% over the last 60 days [1] - The company's shares have gained 60.7% over the last three months, significantly outperforming the S&P 500's advance of 9.4% [1] - Tutor Perini possesses a Momentum Score of A [1] Group 2: Gilat Satellite Networks Ltd. (GILT) - Gilat Satellite Networks Ltd. is a satellite-based broadband communications company with a Zacks Rank 1, and its current year earnings estimate has increased by 78.8% over the last 60 days [2] - The company's shares have gained 33.2% over the last three months, also outperforming the S&P 500's advance of 9.4% [5] - Gilat Satellite possesses a Momentum Score of A [5] Group 3: Watts Water Technologies, Inc. (WTS) - Watts Water Technologies, Inc. is a leading manufacturer of water quality solutions with a Zacks Rank 1, and its current year earnings estimate has increased by 5.8% over the last 60 days [5] - The company's shares have gained 18.6% over the last six months, compared to the S&P 500's advance of 5.6% [9] - Watts Water possesses a Momentum Score of A [9]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Tutor Perini (TPC) Analysis - Tutor Perini (TPC) has shown a price increase of 15.2% over the past four weeks, indicating growing investor interest [4] - TPC has gained 53.6% over the past 12 weeks, with a beta of 1.83, suggesting it moves significantly more than the market [5] - TPC has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - TPC has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - TPC is trading at a Price-to-Sales ratio of 0.62, suggesting it is undervalued, as investors pay only 62 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TPC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]

Core Viewpoint - Tutor Perini (TPC) reported strong quarterly earnings, significantly exceeding expectations, indicating robust performance in the construction sector [1][2]. Financial Performance - The company achieved earnings of $1.41 per share, surpassing the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.19 per share a year ago, resulting in an earnings surprise of +386.21% [1]. - Revenues for the quarter reached $1.37 billion, exceeding the Zacks Consensus Estimate by 11.55%, and up from $1.13 billion in the same quarter last year [2]. - Over the last four quarters, Tutor Perini has surpassed consensus EPS estimates two times and topped revenue estimates twice [2]. Stock Performance - Tutor Perini shares have increased approximately 96.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3]. - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $1.31 billion, and for the current fiscal year, it is $1.74 on revenues of $5.13 billion [7]. - The estimate revisions trend prior to the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]. Industry Context - The Building Products - Heavy Construction industry, to which Tutor Perini belongs, is currently ranked in the top 7% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5].

Financial Data and Key Metrics Changes - The company reported operating cash flow of $262 million for the second quarter, marking it as the second-best cash flow quarter in the company's history [6] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][18] - Operating income rose by 89% to $76 million, reflecting strong performance and contributions from higher-margin projects [7] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 for the previous year [9][22] - The backlog reached a record $21.1 billion, up 102% year-over-year and 9% sequentially [6][11] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [18][19] - Building segment revenue increased by 11% to $462 million, with construction operations income rising from $5 million to $22 million [19] - Specialty Contractors segment revenue was $177 million, up 9%, but posted a loss of $18 million compared to a loss of $8 million last year [20] Market Data and Key Metrics Changes - The company noted strong project execution activities in various newer higher-margin projects, contributing to revenue growth [19] - The backlog includes significant projects in California and the Indo-Pacific region, indicating a robust pipeline for future growth [12][14] Company Strategy and Development Direction - The company is focused on being selective in project bidding, targeting opportunities with favorable contractual terms and higher margins [14][52] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [14] - The company plans to issue share-settled equity instead of cash-settled awards to limit future earnings volatility [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver substantial growth and profitability, with expectations for strong operating cash flow continuing into 2025 and beyond [15][16] - The outlook remains positive, with anticipated GAAP EPS and adjusted EPS in 2026 and 2027 expected to be significantly higher than the upper end of the increased guidance for 2025 [16] - Management does not foresee significant impacts from tariffs on business operations and confirmed that major projects in backlog are funded and authorized [17][66] Other Important Information - The company has reduced its costs and estimated earnings in excess of billings (CIE) to $856 million, the lowest level in eight years [10][23] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010 [23] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are only two significant projects nearing completion, which will be offset by new projects ramping up and generating revenue [32][35] Question: What were the drivers behind better-than-expected first-half results? - The quicker ramp-up of projects, reduced CIE, and fewer write-downs contributed to the better performance [37][38] Question: What is the expected cash flow for the upcoming quarters? - The company anticipates operating cash flow to be between $350 million and $500 million, exceeding previous expectations [40] Question: Is the company seeing less competitive bidding? - Management confirmed minimal competition, with often only one other bidder for large projects [73] Question: How is the project funnel looking? - The company sees significant opportunities in California, the Indo-Pacific region, and the Midwest, while remaining selective in bidding [51][52]

Financial Data and Key Metrics Changes - The company reported a record operating cash flow of $262 million for the second quarter, marking the second-best cash flow in the company's history [6][24] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][19] - Operating income surged by 89% to $76 million, driven by strong performance and contributions from higher-margin projects [7][24] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 [10][24] - The backlog reached an all-time high of $21.1 billion, up 102% year-over-year and 9% sequentially, driven by $3.1 billion in new awards during the quarter [6][12] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [19][20] - Building segment revenue rose by 11% to $462 million, with construction operations income increasing from $5 million to $22 million [20][24] - Specialty Contractors segment revenue increased by 9% to $177 million, but posted a loss of $18 million, up from a loss of $8 million last year [21][24] Market Data and Key Metrics Changes - The company noted strong bidding opportunities primarily in the West Coast, Midwest, and Indo-Pacific regions, with several major projects expected to advance to construction [13][14] - The book-to-burn ratio for the second quarter was an impressive 2.2x, indicating strong demand for new projects [12] Company Strategy and Development Direction - The company is focused on pursuing projects with favorable contractual terms, limited competition, and higher margins, leveraging its record backlog to be selective in bidding [14][15] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong cash flow and profitability, with expectations for continued growth in GAAP and adjusted EPS for 2026 and 2027 [17][18] - The company does not foresee significant impacts from tariffs or cancellations of major projects in backlog, including the California high-speed rail project [17][18] Other Important Information - The company plans to issue share-settled equity awards to limit future earnings volatility and reduce share-based compensation expenses [9] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010, standing at $526 million [25][26] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are no significant projects winding down in the near term, with new projects ramping up to generate more revenue and profit [35][36] Question: How does the company view its win expectation rate on new business? - Management feels confident about winning one or two major projects, which will help offset any revenue reductions from projects winding down [39] Question: What were the drivers behind better-than-expected first-half results? - Key drivers included quicker project execution ramp-ups, reduced costs in excess of billings, and fewer write-downs than anticipated [40][41] Question: What is the outlook for the Specialty Contractors segment? - The expectation is for the Specialty segment to reach breakeven or better as they ramp up production on new projects, with margins projected to improve [58] Question: Is there less competitive bidding for larger projects? - Management confirmed that competition remains minimal, with often only one other bidder for large projects [75][76]