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Primoris Services (PRIM) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Primoris Services (PRIM - Free Report) closed at $29.55, marking a -0.77% move from the previous day. This change lagged the S&P 500's 0.51% gain on the day.

Coming into today, shares of the construction contractor had lost 5.22% in the past month. In that same time, the Construction sector lost 2.21%, while the S&P 500 gained 1.75%.

Investors will be hoping for strength from PRIM as it approaches its next earnings release. The company is expected to report EPS of $0.69, up 1.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $911.2 million, up 0.33% from the year-ago period.

PRIM's full-year Zacks Consensus Estimates are calling for earnings of $2.43 per share and revenue of $3.7 billion. These results would represent year-over-year changes of +8.48% and +5.99%, respectively.

It is also important to note the recent changes to analyst estimates for PRIM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PRIM is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PRIM is currently trading at a Forward P/E ratio of 12.26. Its industry sports an average Forward P/E of 15.4, so we one might conclude that PRIM is trading at a discount comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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