Tutor Perini Corp. (NYSE:TPC) Fits Mark Minervini's High-Growth Momentum Strategy

Tutor Perini Corp. (NYSE:TPC) has recently appeared on a specific screen made to find stocks that fit Mark Minervini's high-growth momentum strategy. This method uses strict technical analysis, via Minervini's Trend Template, with a look at companies showing solid fundamental growth traits. The aim is to find securities that are in strong uptrends and also have improving business fundamentals, setting them up for possible continued good performance.

Technical Strength and the Trend Template

A key part of the Minervini strategy is the Trend Template, a group of technical conditions that find stocks in a confirmed and strong Stage 2 uptrend. TPC shows notable strength by satisfying all the main technical points.

• Price Above Key Moving Averages: The stock's current price of $64.67 trades well above its rising 50-day ($57.05), 150-day ($40.41), and 200-day ($36.47) simple moving averages. This arrangement confirms a positive long-term trend and is a main filter in the Trend Template to make sure a stock is in a bull market phase.
• Moving Average Arrangement: The 50-day moving average is situated above both the 150-day and 200-day averages, and the 150-day is above the 200-day. This "stacked" order points to increasing momentum across several timeframes, a trait of leading stocks.
• Proximity to Highs: TPC is trading within 5% of its 52-week high of $68.09, meeting the Trend Template condition of being within 25% of a new high. Stocks close to their highs frequently have the strongest momentum. Also, the current price is over 250% above its 52-week low, showing a strong recovery and maintained uptrend.
• Superior Relative Strength: With a ChartMill Relative Strength rating of 95.88, TPC is doing better than nearly 96% of all stocks in the market. Minervini states that market leaders need to show superior relative strength, as it points to institutional buying and a greater chance of continued good performance.

High Growth Momentum Fundamentals

Beyond a strong chart, the Minervini method looks for companies with fundamental "superperformance." TPC's High Growth Momentum rating is backed by several strong fundamental metrics, especially in its latest quarter.

• Strong Earnings Growth: The company reported a very high 1,800% year-over-year earnings per share (EPS) growth in its last quarter. While this comes from a low starting point, such a sharp increase is a main feature Minervini searches for, as "big earnings attract big attention" from institutional investors.
• Positive Earnings Revisions: Analysts have notably improved their outlook, with the average EPS estimate for the next year increased by over 16% in the last three months. Positive earnings revisions are a vital part of the strategy, as they often come before further price gains.
• Solid Sales Growth and Cash Flow: Revenue growth for the last quarter was a good 21.8%, and free cash flow per share has increased over 1,172% in the trailing twelve months. This pairing of top-line growth and much better cash generation indicates a fundamental improvement and operational health.
• Profit Margin Improvement: After a time of difficulties, the company's profit margin became positive in the most recent quarter. A getting-better profit trend is an important indicator of a company regaining pricing power and operational effectiveness.

Technical Analysis Overview

The provided technical report gives TPC a top rating of 10 out of 10, showing its very good technical condition. The long and short-term trends are both rated as positive. The analysis observes that the stock is currently showing a bull flag pattern, which frequently offers a possible entry point within a continuing uptrend. While the setup quality is rated a fair 6, the report points to lower volatility and price consolidation, which might provide a thoughtful chance for investors. For a complete look at the support levels and automated trade setup, you can examine the full technical analysis report for TPC.

Finding Similar Opportunities

Tutor Perini Corp. acts as a strong example of a stock that fits a disciplined growth and momentum strategy. For investors looking to find similar chances, the screening process that found TPC can be a useful instrument. You can check the live screen and its present results by going to the High Growth Momentum + Trend Template screen on ChartMill.

Disclaimer: This article is for informational and educational purposes only and does not form investment advice. The analysis is based on publicly available data and should not be taken as a suggestion to buy or sell any security. Always do your own research and think about your personal financial situation and risk tolerance before making any investment decisions.