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Primoris Services Corporation (PRIM) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Primoris Services (PRIM - Free Report) ? Shares have been on the move with the stock up 14.3% over the past month. The stock hit a new 52-week high of $90.89 in the previous session. Primoris Services has gained 17.7% since the start of the year compared to the 5.6% move for the Zacks Construction sector and the 22.8% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 5, 2025, Primoris Services reported EPS of $0.98 versus consensus estimate of $0.72 while it beat the consensus revenue estimate by 9.89%.
For the current fiscal year, Primoris Services is expected to post earnings of $4.48 per share on $6.77 in revenues. This represents a 15.76% change in EPS on a 6.37% change in revenues. For the next fiscal year, the company is expected to earn $5.11 per share on $7.25 in revenues. This represents a year-over-year change of 14.06% and 7.01%, respectively.
Valuation Metrics
Though Primoris Services has recently hit a 52-week high, what is next for Primoris Services? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Primoris Services has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.5X. On a trailing cash flow basis, the stock currently trades at 16.3X versus its peer group's average of 14.2X. Additionally, the stock has a PEG ratio of 1.55. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Primoris Services currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Primoris Services meets the list of requirements. Thus, it seems as though Primoris Services shares could still be poised for more gains ahead.
How Does PRIM Stack Up to the Competition?
Shares of PRIM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MasTec, Inc. (MTZ - Free Report) . MTZ has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. MasTec, Inc. beat our consensus estimate by 50.00%, and for the current fiscal year, MTZ is expected to post earnings of $6.07 per share on revenue of $13.66 billion.
Shares of MasTec, Inc. have gained 6.6% over the past month, and currently trade at a forward P/E of 29.93X and a P/CF of 18.16X.
The Building Products - Heavy Construction industry is in the top 3% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRIM and MTZ, even beyond their own solid fundamental situation.
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Primoris Services Corporation (PRIM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Primoris Services (PRIM - Free Report) ? Shares have been on the move with the stock up 14.3% over the past month. The stock hit a new 52-week high of $90.89 in the previous session. Primoris Services has gained 17.7% since the start of the year compared to the 5.6% move for the Zacks Construction sector and the 22.8% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 5, 2025, Primoris Services reported EPS of $0.98 versus consensus estimate of $0.72 while it beat the consensus revenue estimate by 9.89%.
For the current fiscal year, Primoris Services is expected to post earnings of $4.48 per share on $6.77 in revenues. This represents a 15.76% change in EPS on a 6.37% change in revenues. For the next fiscal year, the company is expected to earn $5.11 per share on $7.25 in revenues. This represents a year-over-year change of 14.06% and 7.01%, respectively.
Valuation Metrics
Though Primoris Services has recently hit a 52-week high, what is next for Primoris Services? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Primoris Services has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 20.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.5X. On a trailing cash flow basis, the stock currently trades at 16.3X versus its peer group's average of 14.2X. Additionally, the stock has a PEG ratio of 1.55. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Primoris Services currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Primoris Services meets the list of requirements. Thus, it seems as though Primoris Services shares could still be poised for more gains ahead.
How Does PRIM Stack Up to the Competition?
Shares of PRIM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is MasTec, Inc. (MTZ - Free Report) . MTZ has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.
Earnings were strong last quarter. MasTec, Inc. beat our consensus estimate by 50.00%, and for the current fiscal year, MTZ is expected to post earnings of $6.07 per share on revenue of $13.66 billion.
Shares of MasTec, Inc. have gained 6.6% over the past month, and currently trade at a forward P/E of 29.93X and a P/CF of 18.16X.
The Building Products - Heavy Construction industry is in the top 3% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRIM and MTZ, even beyond their own solid fundamental situation.