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Should Value Investors Buy Tutor Perini (TPC) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Tutor Perini (TPC - Free Report) . TPC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.80 right now. For comparison, its industry sports an average P/E of 9.40. TPC's Forward P/E has been as high as 8.57 and as low as 1.54, with a median of 5.32, all within the past year.

We should also highlight that TPC has a P/B ratio of 0.47. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. TPC's current P/B looks attractive when compared to its industry's average P/B of 1.24. Over the past year, 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TPC has a P/S ratio of 0.14. This compares to its industry's average P/S of 0.37.

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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