Yahoo Finance Despite shrinking by US$79m in the past week, Tutor Perini (NYSE:TPC) shareholders are still up 166% over 1 year
Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Tutor Perini Corporation (NYSE:TPC). Its share price is already up an impressive 166% in the last twelve months. Also pleasing for shareholders was the 61% gain in the last three months. On the other hand, longer term shareholders have had a tougher run, with the stock falling 18% in three years.
Although Tutor Perini has shed US$79m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
Check out our latest analysis for Tutor Perini
Tutor Perini isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Tutor Perini's revenue grew by 2.4%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 166%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Tutor Perini stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It's good to see that Tutor Perini has rewarded shareholders with a total shareholder return of 166% in the last twelve months. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Tutor Perini you should know about.
Tutor Perini is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
