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Should Value Investors Buy Primoris Services (PRIM) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.03. This compares to its industry's average Forward P/E of 11.91. Over the last 12 months, PRIM's Forward P/E has been as high as 11.83 and as low as 8.03, with a median of 10.24.
Another notable valuation metric for PRIM is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.72. PRIM's P/B has been as high as 1.74 and as low as 1.15, with a median of 1.40, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRIM has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.52.
Finally, investors will want to recognize that PRIM has a P/CF ratio of 5.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 7.80. Over the past 52 weeks, PRIM's P/CF has been as high as 7.72 and as low as 5.33, with a median of 6.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Primoris Services is likely undervalued currently. And when considering the strength of its earnings outlook, PRIM sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Primoris Services (PRIM) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.03. This compares to its industry's average Forward P/E of 11.91. Over the last 12 months, PRIM's Forward P/E has been as high as 11.83 and as low as 8.03, with a median of 10.24.
Another notable valuation metric for PRIM is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.72. PRIM's P/B has been as high as 1.74 and as low as 1.15, with a median of 1.40, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRIM has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.52.
Finally, investors will want to recognize that PRIM has a P/CF ratio of 5.45. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 7.80. Over the past 52 weeks, PRIM's P/CF has been as high as 7.72 and as low as 5.33, with a median of 6.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Primoris Services is likely undervalued currently. And when considering the strength of its earnings outlook, PRIM sticks out at as one of the market's strongest value stocks.