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Primoris Services Corporation’s (PRIM - Free Report) Pipeline Services unit has secured a contract for the construction of 60 miles of pipeline in Texas.
Shares of this leading specialty contractor slipped 2.6% during the trading session on Sep 6. Yet, shares gained 2.7% in the after-hours trading session on the same day.
The contract, valued at $120 million is expected to be completed in the second quarter of 2023. Work under this pipeline contract is slated to begin in the third quarter of 2022.
Contract Wins & Solid Backlog Bode Well
Primoris — a Zacks Rank #2 (Buy) company — has been reaping benefits from strong project Primoris execution. Its continuous contract wins and solid backlog level are testimony to the fact. Last month, Primoris received a solar project contract worth $270 million. The contract was received by the Energy/Renewables segment. The project will add approximately 500-3,900 megawatts of solar power projects, which the company currently has under construction. In July, it received a heavy civil project of more than $170 million from the Texas Department of Transportation. In June, it won a solar project contract. The contract, worth $260 million was won by the Energy/Renewables segment.
As of Jun 30, 2022, the company reported a record backlog of $4.572 billion, representing an increase of 59% from a year ago. The company expects to generate 76% of the total backlog as revenues during the next four quarters. This comprises backlog of 100% of Utilities, 62% of Energy/Renewables and 100% of Pipeline.
Image Source: Zacks Investment Research
Shares of Primoris have underperformed the Zacks Building Products - Heavy Construction industry year to date. Despite macroeconomic woes, the company is likely to benefit from solid performance across the two segments — Utility and Energy/Renewables. Biden’s renewable energy drive and higher infrastructural spending are expected to drive growth for the company.
Other Key Picks
Arcosa, Inc. (ACA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), is a manufacturer of infrastructure-related products and services, serving construction, energy and transportation markets.
ACA’s expected earnings growth rate for 2022 is 7.8%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the past 30 days.
United Rentals, Inc. (URI - Free Report) , a Zacks Rank #1 company, has been benefiting from a broad-based recovery of activity across end markets served. Also, higher margins from rental revenues and used equipment sales are added benefits.
The consensus mark for URI’s 2022 earnings rose to $31.73 per share from $31.03 in the past 30 days. The estimated figure suggests 43.8% year-over-year growth.
Gibraltar Industries, Inc. (ROCK - Free Report) , currently carrying a Zacks Rank of 2, is benefiting from its three-pillar value creation strategy, the strong housing market and solid demand for legacy and TerraSmart businesses.
ROCK’s expected earnings growth rate for 2022 is 19.4%. The Zacks Consensus Estimate for current-year earnings has increased to $3.32 from $3.30 per share over the past 30 days.
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Primoris (PRIM) Secures $120M Pipeline Deal, Boosts Backlog
Primoris Services Corporation’s (PRIM - Free Report) Pipeline Services unit has secured a contract for the construction of 60 miles of pipeline in Texas.
Shares of this leading specialty contractor slipped 2.6% during the trading session on Sep 6. Yet, shares gained 2.7% in the after-hours trading session on the same day.
The contract, valued at $120 million is expected to be completed in the second quarter of 2023. Work under this pipeline contract is slated to begin in the third quarter of 2022.
Contract Wins & Solid Backlog Bode Well
Primoris — a Zacks Rank #2 (Buy) company — has been reaping benefits from strong project Primoris execution. Its continuous contract wins and solid backlog level are testimony to the fact. Last month, Primoris received a solar project contract worth $270 million. The contract was received by the Energy/Renewables segment. The project will add approximately 500-3,900 megawatts of solar power projects, which the company currently has under construction. In July, it received a heavy civil project of more than $170 million from the Texas Department of Transportation. In June, it won a solar project contract. The contract, worth $260 million was won by the Energy/Renewables segment.
As of Jun 30, 2022, the company reported a record backlog of $4.572 billion, representing an increase of 59% from a year ago. The company expects to generate 76% of the total backlog as revenues during the next four quarters. This comprises backlog of 100% of Utilities, 62% of Energy/Renewables and 100% of Pipeline.
Image Source: Zacks Investment Research
Shares of Primoris have underperformed the Zacks Building Products - Heavy Construction industry year to date. Despite macroeconomic woes, the company is likely to benefit from solid performance across the two segments — Utility and Energy/Renewables. Biden’s renewable energy drive and higher infrastructural spending are expected to drive growth for the company.
Other Key Picks
Arcosa, Inc. (ACA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), is a manufacturer of infrastructure-related products and services, serving construction, energy and transportation markets.
ACA’s expected earnings growth rate for 2022 is 7.8%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the past 30 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
United Rentals, Inc. (URI - Free Report) , a Zacks Rank #1 company, has been benefiting from a broad-based recovery of activity across end markets served. Also, higher margins from rental revenues and used equipment sales are added benefits.
The consensus mark for URI’s 2022 earnings rose to $31.73 per share from $31.03 in the past 30 days. The estimated figure suggests 43.8% year-over-year growth.
Gibraltar Industries, Inc. (ROCK - Free Report) , currently carrying a Zacks Rank of 2, is benefiting from its three-pillar value creation strategy, the strong housing market and solid demand for legacy and TerraSmart businesses.
ROCK’s expected earnings growth rate for 2022 is 19.4%. The Zacks Consensus Estimate for current-year earnings has increased to $3.32 from $3.30 per share over the past 30 days.