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Tutor Perini (TPC) Valuation After New Seven-Year U.S. Army Corps Contract and Strong Market Momentum

Simply Wall St · 1d ago

Tutor Perini (TPC) just landed a seven year U.S. Army Corps of Engineers contract in the Middle East, a development that could reshape its revenue visibility and help explain the stock’s recent strength.

See our latest analysis for Tutor Perini.

The contract news lands after a powerful run, with the share price up sharply on a year to date basis and backed by hefty multi year total shareholder returns, suggesting momentum is still very much alive despite short term pullbacks.

If this kind of contract win has you thinking about where else growth might be hiding in industrials and infrastructure, it could be worth exploring fast growing stocks with high insider ownership.

But with the shares already up sharply this year and still trading at a discount to analyst targets, is Tutor Perini a mispriced infrastructure turnaround story, or is the market already baking in years of future growth?

Most Popular Narrative: 25.8% Undervalued

With Tutor Perini last closing at $66.02 against a narrative fair value of $89, the storyline points to a sizable disconnect in expectations.

Record backlog growth, now at an all-time high of $21.1 billion (up 102% YoY), provides strong visibility and multi-year revenue predictability, as a series of major projects ramp up over the next several years.

Read the complete narrative.

Curious how a construction name with recent losses ends up with a double digit growth runway and upgraded profit profile baked into its future valuation? The narrative leans heavily on accelerating revenues, rising margins, and a surprisingly modest earnings multiple to reach that higher fair value. Want to see exactly which financial levers have to fire together to close that gap?

Result: Fair Value of $89 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, execution missteps on mega projects or a resurgence of costly legal disputes could quickly erode margins and undermine that upbeat, backlog-driven narrative.

Find out about the key risks to this Tutor Perini narrative.

Build Your Own Tutor Perini Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.

A great starting point for your Tutor Perini research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.