Tutor Perini Corporation (NYSE:TPC)

Fidelity small cap value with outperforming growth.

down 15% in one day on profit miss news at 52 week low and possibly oversold

value

low pe stock in construction sector

This will truly be a long term pick. Its been hammered, gone through a merger, has no dividend and the economy makes you think, you have to be kidding. I'm not kidding, I think I will take a chance.

Solid business that is consistently profitable. At $19/share, it is 30% undervalued in my estimation.

The company, which has been around for over 100 years, has a long tradition of M&A. In September 2008 it merged with Tutor-Saliba, which significantly increased their civil knowledge and expertise in the Western U.S. -- the two companies have done over 75 projects together as JV’s since 1977, so the fusion of both companies should be seamless. This was strategically important for Tutor Perini as the 2009 stimulus plan allocates a plethora of money toward civil infrastructure ($48 billion towards state-directed transportation projects and $27 billion for highway and bridge projects).

It has beaten analyst estimates 14 out of the last 15 quarters; it has had positive ROE in each of the last 9 years with exception of 2008; debt/equity ratio is 7%; produced free cash flow since 2003. 46% inside ownership, which is primarily due to stock owned by Ronald Tutor. Tutor Perini is trading well below the industry and competitor averages when considering P/E, P/B, and P/S multiples.

Lastly, has $4.9 billion in diversified backlog.

Just dirt cheap. They're projecting a 30% revenue drop for FY10 and FY10 earnings are still 20% of enterprise value. The downside is priced in here.

This met a high level screen to indicate a buy and strong outperform against its peers (other tickers in its industry). My 1st version of this spreadsheet devles deep into the company's balnace sheet and recent income statements, combined with other relevant price data for the company including insider/institutional holdings, short interest, debt levels, etc.
Testing capabilities of this 1st version of my automated, valuation spreadhseet matched with my personal criteria and see how it holds up.

bull

tenmiles (delayed pick)

Good company trading at 2x net cash. Worth the risk at this price.

It may take a while for this stock to soar back to it's former $40 glory but it is bound to happen with all the spending on Infrastructure worldwide. The construction industry has been hit hard by the sub-prime mortgage meltdown and freeze on loans for new projects, but the US gov and other nations are picking up the slack and that means high profits in this sector within the next year or so. I'll buy and hold on for the ride...

Rebounding

Fundamentals/Value

see TSIF (and budandmolly)

possibility this stock may benefit from infrastruture work.

Previous winner

buy the prudent companies poised to grow with the cash and financial ability to expand the next few years & sell the companies that have overexpanded the past 10 years that are likely to go down.

BUY pde, ges, pcr, coms, mtw
SELL apa, dvn, gild, low, utx