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Primoris (PRIM) Wins $170M Heavy Civil Project, Aids Backlog

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Primoris Services Corporation (PRIM - Free Report) received a heavy civil project of more than $170 million from the Texas Department of Transportation. Shares of this leading specialty contractor moved up 2.12% in the after-hours trading session on Jul 5.

Per the deal, Primoris’ Energy/Renewables business will construct a section of Highway 59 in Polk County, TX. It is likely to begin in the third quarter of 2022 with expected completion in the fourth quarter of 2024.

Energy/Renewables’ Continuous Contract Flow: A Boon

Primoris — a Zacks Rank #1 (Strong Buy) company — has been reaping benefits from strong project execution under the Energy/Renewables segment, which accounts for 45.8% of first-quarter revenues. In June, Primoris won a $260 million solar project. It won two solar projects worth $130 million and $120 million in May and two projects with a combined value of more than $155 million in April.

It is to be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased 2% in the first quarter, backed by increased renewable energy activity, partially offset by lower activity on industrial projects in 2022. Segment’s total backlog at March-end was $2,433 million compared with $1,386 million a year ago.

Shares of this leading specialty contractor have outperformed the Zacks Building Products - Heavy Construction industry year to date. The company is benefiting from solid performance across the two segments — Utility and Energy/Renewables. Biden’s renewable energy drive is expected to boost the company’s growth.

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You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Top-Ranked Stocks in the Construction Sector

Weyerhaeuser Company (WY - Free Report) is one of the leading U.S. forest product companies. This Zacks Rank #1 stock has been benefiting from solid new residential construction activity, which in turn is leading to improved demand. Also, its focus on operational excellence has been advantageous over time.

The Zacks Consensus Estimate for WY’s 2022 earnings has moved up to $3.20 per share from $2.83 in the past 30 days.

Boise, ID-based Boise Cascade Company (BCC - Free Report) — which currently carries a Zacks Rank #2 — is aided by favorable commodity wood products, pricing and robust construction activity.

BCC’s earnings estimate for 2022 has moved north to $18.43 per share from $15.07 in the past 30 days.

Jacksonville, FL-based Rayonier Inc. (RYN - Free Report) is well-positioned to capitalize on robust domestic demand trends, with a solid portfolio of timberlands in some of the most productive timber-growing regions of the Southern United States, Pacific Northwest and New Zealand. This will help the company improve the export market conditions and create a favorable pricing environment. RYN is also focused on adding high-quality timberlands to its portfolio through acquisitions.

The consensus estimate for this Zacks Rank #2 player’s 2022 earnings has witnessed an upward revision from 61 cents per share to 65 cents in the past 30 days.