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Is Primoris Services (PRIM) a Great Value Stock Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Primoris Services (PRIM - Free Report) is a stock many investors are watching right now. PRIM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.89 right now. For comparison, its industry sports an average P/E of 12. Over the past 52 weeks, PRIM's Forward P/E has been as high as 11.83 and as low as 7.67, with a median of 10.13.

Another notable valuation metric for PRIM is its P/B ratio of 1.19. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. PRIM's current P/B looks attractive when compared to its industry's average P/B of 1.76. Over the past year, PRIM's P/B has been as high as 1.74 and as low as 1.12, with a median of 1.38.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PRIM has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.53.

Finally, we should also recognize that PRIM has a P/CF ratio of 5.61. 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 P/CF compares to its industry's average P/CF of 8.05. Over the past year, PRIM's P/CF has been as high as 7.72 and as low as 5.27, with a median of 6.28.

These are just a handful of the figures considered in Primoris Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRIM is an impressive value stock right now.


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