Savings Experiment: Snow Removal
The Money Man Behind Rick Santorum: Who Is Foster S. Friess?Perini Corporation (NYSE: PCR) is
a leading construction services company offering diversified general contracting, construction management and design/build services to private clients and public agencies in the U.S. and selected overseas locations. The firm is well know for its casino and hotel projects, but is also active in the design and construction of schools, health care facilities, entertainment facilities and sports complexes. Its civil division builds and maintains highways, subways, and airports. Clients include Marriott International (NYSE: MAR), Honeywell International (NYSE: HON) and American Express (NYSE: AXP).
The company surprised the Street earlier in the month, when it reported Q1 EPS of 91 cents and revenues of $1.26 billion. Analysts had been expecting 87 cents and $1.27 billion. The COO cited strong contributions from the building and management services segments. Management also guided FY08 EPS to $3.50-$3.75 ($3.73 consensus), FY08 revenues to $5.5-$5.9 million ($5.16B consensus), FY09 EPS to $4.00-$4.20 ($3.85 consensus) and FY09 revenues to $7.3-$7.8 billion ($5.46B consensus).
The PCR
share price popped on the news and has since been defining a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.
Brokers recommend the issue with one "strong buy", one "buy" and two "holds". The PCR P/E ratio (11.48), PEG ratio (0.92), Price to Sales ratio (0.23), Price to Book ratio (2.84), Price to Cash Flow ratio (10.42), Price to Free Cash Flow ratio (4.77), Return on Investment (25.69%) and Revenue per Employee ($1.18M) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $25.08 and $75.43. A stop-loss of $34.80 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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