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

Core Viewpoint - Tutor Perini Corporation (TPC) has experienced a significant stock price increase of 64.1% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry growth of 21.6% and the broader Construction sector's rise of 7.2% [1][2] Group 1: Company Performance - TPC has secured consistent contract wins, ending Q1 2025 with a record backlog of $19.4 billion, reflecting a year-over-year increase of 94% [10][7] - The company's revenues and earnings for Q1 2025 rose by 19% and 77% year-over-year, respectively, driven by higher-margin project execution [12][7] - EPS estimates for 2025 and 2026 have increased by 14.4% and 10.8% in the past 60 days, indicating strong market and project momentum [7][21] Group 2: Strategic Focus - Tutor Perini is focusing on executing higher-margin projects, which supports sustained growth and improved profitability [12][13] - The company has adopted a selective bidding process, allowing it to choose projects with favorable terms and limited competition [13][10] - Efficient capital allocation has led to a 24% reduction in total debt, from $534 million at the end of 2024 to $406 million as of March 31, 2025 [14][10] Group 3: Market Conditions - There is strong demand for TPC's services, driven by well-funded state, local, and federal customers planning large-scale infrastructure projects [15][22] - The company anticipates continued strong backlog in 2025, having already secured over $500 million in new awards in Q2 [11][10] - Tutor Perini has increased its 2025 EPS guidance to $1.60-$1.95, up from the previous range of $1.50-$1.90, with expectations for EPS in 2026 and 2027 to be more than double that of 2025 [16][22] Group 4: Valuation and Investment Potential - TPC's current valuation is attractive, trading at a forward 12-month P/E ratio of 18.17X, lower than the industry average of 18.81X [18][20] - The stock is also trading at a discount compared to peers like EMCOR and MasTec, which have P/E ratios of 19.28X and 24.87X, respectively [20][18] - The combination of consistent contract awards, a growing backlog, and a focus on higher-margin projects positions Tutor Perini favorably for long-term growth [22][23]