Tutor Perini: New Contract Should Buoy This Stock That Is 50% Under Analysts' Price Targets

Jul. 9.12 | About: Tutor Perini (TPC)

Tutor Perini (TPC) just announced $2B in new contracts today with another $900mm of potential awards. This long downtrodden construction stock looks like it is finally ready to reward long suffering shareholders.

6 reasons TPC has solid long term value at $13 a share:

  1. The four analysts that cover the stock have a median price target of $20 a share on TPC. The low target is $16 a share and the high target is $28 a share.
  2. The stock is selling at the bottom of its five year valuation ranged based on P/E, P/B, P/S and P/CF.
  3. TPC is ridiculously cheap at 15% of annual revenues and just 43% of book value.
  4. The stock is priced at under 5.5 times forward earnings, a s discount to its five year average (8.9).
  5. Analysts expect almost 20% sales growth in FY2012 and an almost 10% revenue increase in FY2013. TPC has a five year projected PEG of less than 1 (.57).
  6. The stock looks like it has recently bottomed at just recently crossed its 50 day moving average (see chart).

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Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TPC over the next 72 hours.