Shares of Tutor Perini Corporation (TPC) hit a new 52-week high of $29.80 during intraday trading before closing lower at $29.38 on March 17. The leading civil and building construction company has delivered a robust 1-year return of about 61.9%, outperforming the S&P 500 return of 21.44%.
Over the past 52 weeks, Tutor Perini’s share price has ranged from a 52-week low of $15.47 on Apr 22, 2013, to a 52-week high of $29.80 on Mar 17, 2014. Average volume of shares traded over the last 3 months is approximately 254K. Tutor Perini has a market cap of $1.42 billion and long-term estimated earnings per share growth rate of 15%.
What's Driving Tutor Perini Upward?
Shares of Tutor Perini started escalating following its strong fourth-quarter results on Feb 24. Adjusted earnings per share were 68 cents in the fourth quarter, a 3% year-over-year increase. Fiscal 2013 earnings per share improved 23% to $1.80.
Total backlog as of 2013 end, was $7 billion, up 25% year over year. In the quarter, additions to backlog worth mentioning were a $510 million platform project at Hudson Yards in New York City, the company’s approximately $200 million share of the St. Croix Crossing bridge project connecting Oak Park Heights, MN and St. Joseph, WI, a $61 million mixed-use building development project in New Orleans, LA, and a $41 million landfill closure and sewer improvement project in Guam.
Tutor Perini expects earnings per share to lie between $2.20 and $2.40 in 2014. Revenues are expected in the range of $4.5–$5 billion.
The company continues to win contracts and has prospects of winning future awards given the significant volume of pending awards in the market. Building segments and margins are also expected to grow over the next year, driven primarily by the additional phases of the Hudson Yards projects.
Other Stocks to Consider
Tutor Perini currently carries a short-term Zacks Rank #4 (Sell). Better-ranked stocks in the sector include Gibraltar Industries, Inc. (ROCK), MasTec, Inc. (MTZ) and USG Corp. (USG). While Gibraltar Industries holds a Zacks Rank #1 (Strong Buy), MasTec and USG Corporation hold a Zacks Rank #2 (Buy).