vdostalik

TPC stock going up after finally reporting good results

Long
NYSE:TPC   Tutor Perini Corporation
Tutor Perini Corp NYSE:TPC stock price plummeted hard in the last year. It went from $17ish levels in Nov19 all the way to its bottom at $2.50 during the market panic this Mar20. Since then the stock is going up (yesterday close at $7.77). Governments across the globe are planning massive infrastructure investments to support their economies. As construction and engineering provider and a government contractor, TPC is in a good position to perform in the upcoming crisis much better than the market ( TVC:SPX , NASDAQ:NDAQ CURRENCYCOM:US100 CURRENCYCOM:US30 CURRENCYCOM:EU50 XETR:DAX ).

The TPC stock has experienced a drawdown throughout 2019. The company was consistently reporting bad results and consecutive Earning Reports ended with a negative surprise.

The hypothesis that government contractors have a good chance to overcome this crisis well is supported by TPC's last Earnings Report. The current uptrend is supported by significantly good results, with a surprise of +0.28 (467%). This is in line with analyst targets on TipRanks, where TPC is targeted in the range of $16-$18. Targets at $17ish levels might seem out of bounds given the recent TPC's stock development, however, it is exactly the levels where the stock was several times during 2019, while consistently reporting bad results.

In the upcoming months, we expect the TPC price to be heading towards $11 levels, until the next earnings report. It is definitely a good stock for the upcoming quarter. Whether it grows even more, or even all the way back to $17 will highly depend on upcoming Earning Reports.
Trade active: TPC is 7% up shortly after market open today
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