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Is Tutor Perini (TPC) Stock Undervalued Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Tutor Perini (TPC). TPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.56, while its industry has an average P/E of 10.01. Over the past 52 weeks, TPC's Forward P/E has been as high as 8.57 and as low as 1.54, with a median of 5.19.

Investors should also recognize that TPC has a P/B ratio of 0.43. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.24. Within the past 52 weeks, TPC's P/B has been as high as 0.64 and as low as 0.10, with a median of 0.42.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TPC has a P/S ratio of 0.12. This compares to its industry's average P/S of 0.32.

These are only a few of the key metrics included in Tutor Perini's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TPC looks like an impressive value stock at the moment.


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