EMCOR vs. Tutor Perini: Which Construction Stock Has More Upside Now?

Ongoing public and private investment continues to support demand across the U.S. construction and infrastructure landscape, spanning transportation, energy systems, healthcare facilities, data centers and large institutional projects. Within this environment, EMCOR Group, Inc. EME and Tutor Perini Corporation TPC have emerged as two well-positioned contractors, each benefiting from strong project activity and long-term infrastructure funding momentum.While both companies operate within complex, project-driven construction markets, their approaches differ. EMCOR emphasizes diversified electrical, mechanical and building services with a focus on execution consistency and margin discipline. Tutor Perini, by contrast, is more concentrated on large-scale civil and complex building projects that can offer meaningful upside but also introduce greater project-specific risk.Furthermore, easing financial conditions following recent monetary policy shifts are creating a more supportive backdrop for infrastructure investment and project financing. As execution quality, backlog strength and cash generation take center stage, these two companies have become natural comparables.Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one has more upside now.The Case for EMCOR StockThis Connecticut-based infrastructure service provider is benefiting from a strong project pipeline and consistent execution across its core electrical and mechanical construction businesses. The company continues to see solid demand across data centers, health care, manufacturing, transportation and water infrastructure, supported by effective labor planning and the increasing use of digital construction tools such as VDC, BIM and prefabrication. These capabilities are helping improve execution efficiency on large, complex projects while supporting margin stability across multiple end markets.Visibility remains a key strength. Remaining performance obligations reached $12.61 billion in the third quarter, up from $9.79 billion a year earlier, reflecting broad-based growth across Network & Communications, health care, manufacturing and water and wastewater markets. Network & Communications led the increase, nearly doubling year over year, while health care and manufacturing benefited from acquisition activity and onshoring-related demand. This expanding backlog provides meaningful revenue visibility extending in 2026 and beyond.However, the company operates within a project-driven model where changes in project timing can create quarterly variability in results. Labor availability remains tight and wage inflation continues to pressure cost structures, particularly on newly awarded or geographically expanded projects. Competitive bidding across electrical, mechanical and building services markets can also limit pricing flexibility, reinforcing the need for disciplined project selection and execution.Looking ahead, the company expects steady demand across construction and service-oriented markets to support longer-term growth. Ongoing stabilization within the U.S. Building Services, combined with recurring Mechanical Services revenues and a growing backlog, positions EMCOR to improve resilience, enhance margins and sustain growth as projects progress and service demand remains intact.The Case for Tutor Perini StockThis California-based general contracting company is witnessing robust project wins across its Civil and Building segments, supported by strong federal, state and local funding initiatives in the United States. Tutor Perini continues to benefit from elevated infrastructure spending and large institutional development activity, driving execution across transportation, healthcare and public-sector projects.Backlog strength remains a central driver of visibility. At the end of the third quarter of 2025, total backlog reached a record $21.6 billion, representing a 54% year-over-year increase, driven by approximately $2 billion in new awards and contract adjustments during the period. Both the Civil and Building segments reported record backlog levels, reinforcing multi-year revenue visibility as large projects advance through extended construction cycles.However, the company’s operating model introduces certain risks. Tutor Perini remains exposed to large, lump-sum and highly complex projects, where execution challenges, cost pressures or dispute-related issues can create earnings volatility. In addition, higher share-based compensation expenses weighed on reported profitability, while the timing of project ramp-ups and dispute resolutions can contribute to quarter-to-quarter variability despite strong underlying demand.Looking ahead, the company expects its record backlog and robust bidding pipeline to support continued growth and improved cash generation. As newer projects progress into more active construction phases and legacy issues continue to unwind, Tutor Perini believes it is positioned to deliver stronger operating performance and sustained momentum in the periods ahead.Stock Performance & ValuationAs witnessed from the chart below, in the past six months, EMCOR’s share price performance stands below Tutor Perini’s and the Zacks Building Products - Heavy Construction industry.Image Source: Zacks Investment ResearchConsidering valuation, EMCOR is currently trading at a premium compared with Tutor Perini on a forward 12-month price-to-earnings (P/E) ratio basis.Image Source: Zacks Investment ResearchComparing EPS Estimate Trends of EME & TPCThe Zacks Consensus Estimate for EME’s 2026 revenues and EPS indicates 5.9% and 8.6% year-over-year growth, respectively. The 2026 EPS estimate has remained unchanged at $27.41 over the past 30 days.EME’s EPS TrendImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for TPC’s 2026 revenues and EPS indicates 12.5% and 17.7% year-over-year growth, respectively. The 2026 EPS estimate has remained unchanged at $4.72 over the past 30 days.TPC’s EPS TrendImage Source: Zacks Investment ResearchWhich Construction Stock Has More Upside Now?EMCOR and Tutor Perini both stand to benefit from sustained U.S. infrastructure spending, but their fundamentals suggest different near-term investment profiles. EMCOR is supported by a diversified business mix, steady execution and strong backlog visibility across electrical, mechanical and building services markets. Tutor Perini offers greater exposure to large-scale civil and complex building projects, supported by a record backlog, but faces higher variability tied to project execution, dispute resolution and margin progression on lump-sum work.As both companies currently carry a Zacks Rank #3 (Hold), Tutor Perini’s stronger growth outlook and discounted valuation make it the comparatively more compelling construction stock at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME): Free Stock Analysis Report Tutor Perini Corporation (TPC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks