Tutor Perini Stock Up 29% in Past Month: Still a Buy or Hold?

Core Insights - Tutor Perini Corporation (TPC) has experienced a 29% stock price increase in the past month, significantly outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector, and the S&P 500 index [2][9] - The company's second-quarter 2025 adjusted earnings per share (EPS) reached $1.41, and revenues totaled $1.37 billion, exceeding the Zacks Consensus Estimate by 386.2% and 11.6%, respectively, with year-over-year increases of 315% and 22% [3][9] - TPC's backlog grew by 102% year-over-year to a record high of $21.1 billion, driven by strategic bidding and favorable market conditions [7][9] Financial Performance - The adjusted EPS outlook for 2025 has been raised to a range of $3.65-$3.95, up from $2.45-$2.80, while GAAP EPS is now expected to be between $1.70-$2.00, an increase from the previous range of $1.60-$1.95 [11][23] - The company ended Q2 2025 with cash and cash equivalents of $526.1 million, up from $455.1 million at the end of 2024, and reduced long-term debt to $393.3 million from $510 million [13][14] Market Opportunities - Increased public spending in the U.S. is driving project wins for TPC, particularly in its Civil and Building segments, with a strategic focus on projects with limited competition and higher margins [7][10] - Significant new awards include the $1.87 billion Midtown Bus Terminal Replacement Phase 1 project in New York and a $538 million healthcare project in California [8][9] Competitive Landscape - TPC faces competition from large diversified peers such as Jacobs Solutions, Fluor Corporation, and Granite Construction, but its infrastructure-centric approach allows it to secure major U.S. projects [15][19] - TPC's size and broader portfolio enable it to undertake larger, more technically demanding projects compared to its competitors [19] Valuation and Analyst Sentiment - TPC's stock is currently trading at a forward P/E ratio of 15.62, indicating a discounted valuation compared to industry peers, presenting an attractive entry point for investors [22] - Analysts have shown strong optimism for TPC, with all recommendations pointing to a "Strong Buy" status [26][28]