Are Investors Undervaluing Tutor Perini (TPC) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Tutor Perini (TPC) is a stock many investors are watching right now. TPC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 14.92, which compares to its industry's average of 20.23. Over the past 52 weeks, TPC's Forward P/E has been as high as 21.71 and as low as -18.85, with a median of 16.26.

Another valuation metric that we should highlight is TPC's P/B ratio of 2.78. The P/B is a method of comparing a stock's market value to 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 5.56. TPC's P/B has been as high as 2.81 and as low as 0.87, with a median of 1.16, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.81. This compares to its industry's average P/S of 1.09.

Value investors will likely look at more than just these metrics, but the above data helps show that Tutor Perini is likely undervalued currently. And when considering the strength of its earnings outlook, TPC sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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