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Are Investors Undervaluing Primoris Services (PRIM) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.47. This compares to its industry's average Forward P/E of 13.79. Over the past year, PRIM's Forward P/E has been as high as 11.83 and as low as 7.10, with a median of 9.97.
Another valuation metric that we should highlight is PRIM's P/B ratio of 1.04. 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. This stock's P/B looks solid versus its industry's average P/B of 1.97. Within the past 52 weeks, PRIM's P/B has been as high as 1.58 and as low as 0.99, with a median of 1.34.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PRIM has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.58.
Finally, investors should note that PRIM has a P/CF ratio of 5.02. 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 9.64. Within the past 12 months, PRIM's P/CF has been as high as 7.10 and as low as 4.77, with a median of 6.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Primoris Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRIM feels like a great value stock at the moment.
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Are Investors Undervaluing Primoris Services (PRIM) Right Now?
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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.47. This compares to its industry's average Forward P/E of 13.79. Over the past year, PRIM's Forward P/E has been as high as 11.83 and as low as 7.10, with a median of 9.97.
Another valuation metric that we should highlight is PRIM's P/B ratio of 1.04. 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. This stock's P/B looks solid versus its industry's average P/B of 1.97. Within the past 52 weeks, PRIM's P/B has been as high as 1.58 and as low as 0.99, with a median of 1.34.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PRIM has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.58.
Finally, investors should note that PRIM has a P/CF ratio of 5.02. 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 9.64. Within the past 12 months, PRIM's P/CF has been as high as 7.10 and as low as 4.77, with a median of 6.15.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Primoris Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRIM feels like a great value stock at the moment.