We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Primoris (PRIM) Wins Heavy Civil Deals, Aids Renewables Unit
Read MoreHide Full Article
Primoris Services Corporation’s (PRIM - Free Report) Energy/Renewables unit has secured two heavy civil contracts from the Texas Department of Transportation. The two contracts, on a combined basis, are worth $32 million.
Shares of this specialty contractor company have gained 1.87% during the trading session on Dec 7, 2021.
The first contract enables Primoris to construct a section of highway SL 121 in Bell County, TX. The project is scheduled to start in first-quarter 2022 and is slated for completion in second-quarter 2024.
With the second contract, Primoris will replace a bridge in Harris County, TX. The work is scheduled to start in first-quarter 2022, with completion expected in second-quarter 2023.
Energy/Renewables’ Continuous Contract Win: A Boon
Recently, Primoris received two heavy civil contracts from the Louisiana Department of Transportation and Development for a combined value of $520 million. These Gulf Coast projects will aid the Energy/Renewables segment’s backlog. Per the first contract, Primoris will construct a section of highway on LA 3241 for more than $60 million. The second contract, valued at $460 million, is related to constructing a section of elevated highway on LA 1. While work on the LA 3241 is expected to commence in fourth-quarter 2021 and be completed in second-quarter 2023, the same on LA 1 is likely to begin in first-quarter 2022 and end in fourth-quarter 2027.
Also, it received two solar contracts for engineering, procurement, and construction of a utility-scale solar facility in Southwest and Midwest for more than $120 million. Again, PRIM received a contract for engineering, procurement and construction of a thermal power project worth $100 million. The segment secured this contract to offer the above-mentioned services to a 200-MW thermal power in two different locations in the Southwest.
Although shares of this Zacks Rank #5 (Strong Sell) company have underperformed the Zacks Building Products - Heavy Construction industry year to date (YTD), the company has been benefiting from solid performance across the two segments — Utility and Energy/Renewables.
Biden administration’s renewable energy drive is expected to boost the growth of companies like Primoris. It is to be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased 11% and gross margin increased 150 basis points year over year owing to greater renewable energy activity during third-quarter 2021.
Image Source: Zacks Investment Research
Some Better-Ranked Stocks in the Construction Sector
Beazer Homes USA, Inc. (BZH - Free Report) currently sports a Zacks Rank #1 (Strong Buy). This Atlanta-based homebuilder continues to gain from strong operational execution and persistent strength in the housing market. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beazer Homes’ shares have gained 47.5% year to date compared with the industry’s 33.6% rally. Earnings are expected to grow 23.7% in fiscal 2022.
TRI Pointe Group Inc. (TPH - Free Report) currently carries a Zacks Rank #1. This Irvine, CA-based homebuilder designs, constructs, and sells single-family detached and attached homes in the United States. Robust demand and pricing as well as improved operating leverage have been driving TRI Pointe's performance. Cost-cutting initiatives implemented earlier this year and focus on entry-level buyers have been adding to the positives.
TRI Pointe’s shares have surged 57.4% year to date. Earnings for 2021 and 2022 are expected to rise 80.2% and 9.6%, respectively.
Meritage Homes Corporation (MTH - Free Report) currently sports a Zacks Rank #1. Based in Scottsdale, AZ, Meritage Homes is one of the leading designers and builders of single-family homes. Its focus on entry-level LiVE.NOW homes has been a major driving factor.
MTH has gained 45.6% year to date. Earnings are expected to grow 74.6% in 2021 and 21.2% in the next year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Primoris (PRIM) Wins Heavy Civil Deals, Aids Renewables Unit
Primoris Services Corporation’s (PRIM - Free Report) Energy/Renewables unit has secured two heavy civil contracts from the Texas Department of Transportation. The two contracts, on a combined basis, are worth $32 million.
Shares of this specialty contractor company have gained 1.87% during the trading session on Dec 7, 2021.
The first contract enables Primoris to construct a section of highway SL 121 in Bell County, TX. The project is scheduled to start in first-quarter 2022 and is slated for completion in second-quarter 2024.
With the second contract, Primoris will replace a bridge in Harris County, TX. The work is scheduled to start in first-quarter 2022, with completion expected in second-quarter 2023.
Energy/Renewables’ Continuous Contract Win: A Boon
Recently, Primoris received two heavy civil contracts from the Louisiana Department of Transportation and Development for a combined value of $520 million. These Gulf Coast projects will aid the Energy/Renewables segment’s backlog. Per the first contract, Primoris will construct a section of highway on LA 3241 for more than $60 million. The second contract, valued at $460 million, is related to constructing a section of elevated highway on LA 1. While work on the LA 3241 is expected to commence in fourth-quarter 2021 and be completed in second-quarter 2023, the same on LA 1 is likely to begin in first-quarter 2022 and end in fourth-quarter 2027.
Also, it received two solar contracts for engineering, procurement, and construction of a utility-scale solar facility in Southwest and Midwest for more than $120 million. Again, PRIM received a contract for engineering, procurement and construction of a thermal power project worth $100 million. The segment secured this contract to offer the above-mentioned services to a 200-MW thermal power in two different locations in the Southwest.
Although shares of this Zacks Rank #5 (Strong Sell) company have underperformed the Zacks Building Products - Heavy Construction industry year to date (YTD), the company has been benefiting from solid performance across the two segments — Utility and Energy/Renewables.
Biden administration’s renewable energy drive is expected to boost the growth of companies like Primoris. It is to be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased 11% and gross margin increased 150 basis points year over year owing to greater renewable energy activity during third-quarter 2021.
Some Better-Ranked Stocks in the Construction Sector
Beazer Homes USA, Inc. (BZH - Free Report) currently sports a Zacks Rank #1 (Strong Buy). This Atlanta-based homebuilder continues to gain from strong operational execution and persistent strength in the housing market. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beazer Homes’ shares have gained 47.5% year to date compared with the industry’s 33.6% rally. Earnings are expected to grow 23.7% in fiscal 2022.
TRI Pointe Group Inc. (TPH - Free Report) currently carries a Zacks Rank #1. This Irvine, CA-based homebuilder designs, constructs, and sells single-family detached and attached homes in the United States. Robust demand and pricing as well as improved operating leverage have been driving TRI Pointe's performance. Cost-cutting initiatives implemented earlier this year and focus on entry-level buyers have been adding to the positives.
TRI Pointe’s shares have surged 57.4% year to date. Earnings for 2021 and 2022 are expected to rise 80.2% and 9.6%, respectively.
Meritage Homes Corporation (MTH - Free Report) currently sports a Zacks Rank #1. Based in Scottsdale, AZ, Meritage Homes is one of the leading designers and builders of single-family homes. Its focus on entry-level LiVE.NOW homes has been a major driving factor.
MTH has gained 45.6% year to date. Earnings are expected to grow 74.6% in 2021 and 21.2% in the next year.