TUTOR PERINI CORP (NYSE:TPC): A High-Growth Momentum and Technical Breakout Setup

For investors aiming to join solid fundamental growth with well-timed technical entry signals, a multi-factor screening method can be a useful instrument. One practical technique is to find companies that not only show firm earnings and sales momentum, a sign of high-growth investing, but are also in a positive technical state, ready for a possible breakout. This tactic searches for the meeting of speeding up business results and a price pattern that indicates the market is pausing before its next move up. A recent filter using these ideas has pointed to TUTOR PERINI CORP (NYSE:TPC) as a stock deserving further examination.

Fundamental Growth Momentum

Its foundation, high-growth momentum investing centers on companies showing speeding up financial results. Tutor Perini’s recent reports display several indicators of this momentum, giving it a ChartMill High Growth Momentum Rating of 6. This rating combines important growth and momentum measures into one number.

• Earnings Speed Increase: The most noticeable proof is in the company's quarterly earnings per share (EPS) growth. While the trailing twelve-month (TTM) EPS is still negative, the year-over-year growth rate for the newest quarter jumped to 103.6%. Even more convincing is the speed increase from the quarter before, which showed a very large 1800% growth compared to the same time a year earlier.
• Sales Growth: Revenue momentum is also firm, with the newest quarter reporting sales growth of 30.7% year-over-year. This comes after a steady 21.8% growth in the previous quarter, pointing to continued top-line increase.
• Cash Flow Creation: Maybe one of the most positive fundamental signs is the large rise in free cash flow. Over the past TTM year, Tutor Perini’s free cash flow per share increased by a notable 610.6%, reaching $9.96. Firm cash creation is a vital sign of financial strength and quality of earnings for a construction company.
• Analyst Changes & Surprises: The company has exceeded revenue forecasts in three of the last four quarters, with an average beat of 5.8%. While EPS surprises have varied, the meaningful upward changes to sales forecasts for the next year (up 1.2% over three months) indicate analysts are acknowledging the bettering business direction.

These elements together create an image of a company in the middle of a meaningful operational recovery, shifting from times of reduction to solid increase, a main condition looked for by momentum investors.

Technical Strength and Setup Quality

A solid fundamental story is most effective when joined with a positive technical setting. According to the detailed technical report, Tutor Perini scores well on both trend condition and setup quality, with a Technical Rating of 8 and a Setup Rating of 8.

• Long-Term Trend Strength: The stock is in a confirmed long-term positive trend and has been a market leader over the past year, doing better than 97% of all stocks. It also does better than 96% of its peers in the Construction & Engineering industry. The stock trades well above its important long-term moving averages (the 100-day and 200-day SMAs), confirming the strength of the main uptrend.
• Pause Within a Trend: Presently, the short-term trend is called neutral, which in this situation is positive. The stock has been trading in a range between about $64.65 and $71.64 over the past month, absorbing its earlier gains. This pause has lowered volatility and created a clear support area between $64.51 and $66.77, held by several trendlines and moving averages.
• A Clear Breakout Setup: The mix of a solid long-term uptrend and a recent short-term pullback/pause forms a standard breakout setup. The technical study finds immediate resistance in the $67.54 to $70.46 zone. A clear move above this resistance could signal the restart of the upward trend, providing a possible entry point. The close support area gives a logical place to set a protective stop-loss order, outlining the risk of the trade.

Conclusion

Tutor Perini shows a situation where bettering fundamental momentum matches a technically sound price pattern. For investors using a high-growth momentum plan, the company’s speeding up quarterly EPS, firm sales growth, and large free cash flow are main attractions. These fundamental catalysts are given extra importance by the stock’s technical picture, which shows it pausing within a strong longer-term uptrend, creating the conditions for a possible new breakout.

This mix of elements is exactly what the screening method tries to find: companies with the fundamental engine to push growth and the technical position to suggest the market is getting ready for that growth to be acknowledged.

Find More Possible Setups

The filter that found Tutor Perini is made to find other stocks showing similar high-growth momentum and positive technical setups. You can review the present results and run this filter yourself here: High Growth Momentum Breakout Setups Screen.

Disclaimer: This article is for information only and does not form investment advice, a suggestion, or an offer or request to buy or sell any securities. The study shown is based on given data and should not be the only base for any investment choice. Investing includes risk, including the possible loss of principal. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.