Tutor Perini (TPC) Surges 7.8%: Is This an Indication of Further Gains?

Tutor Perini (TPC) shares ended the last trading session 7.8% higher at $86.78. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.2% loss over the past four weeks.

Tutor Perini stock surged after S&P Dow Jones Indices announced the company will join the S&P SmallCap 600. The rally was further supported by the company's strong execution, robust project backlog and a recent contract award.

This construction company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of -3.6%. Revenues are expected to be $1.56 billion, up 13.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Tutor Perini, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TPC going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Tutor Perini is a member of the Zacks Building Products - Heavy Construction industry. One other stock in the same industry, MasTec (MTZ), finished the last trading session 4.4% higher at $351.4. MTZ has returned -17.2% over the past month.

For MasTec, the consensus EPS estimate for the upcoming report has changed +14.4% over the past month to $2.19. This represents a change of +47% from what the company reported a year ago. MasTec currently has a Zacks Rank of #1 (Strong Buy).

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

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