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Is Primoris Services (PRIM) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 15.06. This compares to its industry's average Forward P/E of 19.08. Over the past year, PRIM's Forward P/E has been as high as 22.17 and as low as 11.89, with a median of 17.32.
PRIM is also sporting a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PRIM's industry currently sports an average PEG of 1.20. PRIM's PEG has been as high as 1.28 and as low as 0.92, with a median of 1.13, all within the past year.
Another valuation metric that we should highlight is PRIM's P/B ratio of 2.68. The P/B ratio is used to compare a stock's market value with 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 4.17. Within the past 52 weeks, PRIM's P/B has been as high as 3.39 and as low as 1.96, with a median of 2.43.
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 0.59. This compares to its industry's average P/S of 0.96.
Finally, investors should note that PRIM has a P/CF ratio of 13.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 17.38. Over the past 52 weeks, PRIM's P/CF has been as high as 17.64 and as low as 9.65, with a median of 12.59.
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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Is Primoris Services (PRIM) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice 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 15.06. This compares to its industry's average Forward P/E of 19.08. Over the past year, PRIM's Forward P/E has been as high as 22.17 and as low as 11.89, with a median of 17.32.
PRIM is also sporting a PEG ratio of 1.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PRIM's industry currently sports an average PEG of 1.20. PRIM's PEG has been as high as 1.28 and as low as 0.92, with a median of 1.13, all within the past year.
Another valuation metric that we should highlight is PRIM's P/B ratio of 2.68. The P/B ratio is used to compare a stock's market value with 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 4.17. Within the past 52 weeks, PRIM's P/B has been as high as 3.39 and as low as 1.96, with a median of 2.43.
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 0.59. This compares to its industry's average P/S of 0.96.
Finally, investors should note that PRIM has a P/CF ratio of 13.17. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 17.38. Over the past 52 weeks, PRIM's P/CF has been as high as 17.64 and as low as 9.65, with a median of 12.59.
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.