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Tutor Perini to Serve as Managing Partner for $1.18B Project

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Tutor Perini Corporation’s (TPC - Free Report) joint venture (JV) with O&G Industries, Inc. has been selected by the Port Authority of New York and New Jersey for a $1.18-billion project.

Following the contract announcement, TPC stock gained 7.2% during trading hours and inched up 0.9% in the after-hours on Monday.

Here’s What to Know About TPC’s New Win

The newly awarded contract encompasses the Guideway and Stations Project at Newark Liberty International Airport in New Jersey, condensed under the AirTrain Newark Replacement Program.

Per the contract, the JV will be responsible for designing and constructing a 2.5-mile elevated, automated people-mover train system comprising three stations. This will replace the existing AirTrain, which has operated since 1996.

For the project, Tutor Perini will be serving as the managing partner with 25% of weightage alongside O&G Industries. Parsons Corporation will be serving as the JV’s lead design subcontractor for the Guideway and Stations Project.

Tutor Perini’s Consistent Contract Wins

TPC's efficient project execution, diversified delivery methods and services have aided it in getting contracts and awards consistently. This is the company's primary growth driver, which adds to its backlog level, thus determining its long-term growth prospects in this everchanging economy.

At the end of Sept. 30, 2024, the company backlog was $14 billion, which was up sequentially from $10.42 billion and from $10.16 billion on Dec. 31, 2023. The impressive increase in the backlog was driven by several new projects, which the company received in the third quarter of 2024. Some significant new awards include the $1.66-billion City Center Guideway and Stations Project in Honolulu; the $1.1-billion Kensico-Eastview Connection Tunnel in New York for Frontier-Kemper; and a healthcare campus project in California worth more than $1 billion for Rudolph and Sletten.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Given this robust growth trend, the TPC stock has gained 36.7% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry’s 28.4% growth. Tutor Perini expects its backlog to grow notably in the remainder of 2024 following into 2025, given the fair share of various large project opportunities on its way.

TPC’s Zacks Rank & Key Picks

Tutor Perini currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 21.5%, on average. Shares of STRL have gained 41.6% in the past six months. The Zacks Consensus Estimate for STRL’s 2024 sales and earnings per share (EPS) implies an increase of 9% and 33.3%, respectively, from the prior-year levels.

Louisiana-Pacific Corporation (LPX - Free Report) currently flaunts a Zacks Rank of 1. LPX delivered a trailing four-quarter earnings surprise of 30.7%, on average. The stock has gained 25.6% in the past six months.

The Zacks Consensus Estimate for LPX’s 2024 sales and EPS indicates an increase of 12.7% and 72.1%, respectively, from a year ago.

MasTec, Inc. (MTZ - Free Report) presently sports a Zacks Rank of 1. MTZ delivered a trailing four-quarter earnings surprise of 40.2%, on average. The stock has risen 27.2% in the past six months.

The Zacks Consensus Estimate for MTZ’s 2024 sales and EPS indicates an increase of 1.9% and 84.3%, respectively, from a year ago.


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