Primoris Services (PRIM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Primoris Services (PRIM) closed at $32.57, marking a -1.09% move from the previous day. This change lagged the S&P 500's daily gain of 0.82%.
Heading into today, shares of the construction contractor had lost 1.76% over the past month, lagging the Construction sector's gain of 6.11% and the S&P 500's gain of 2.31% in that time.
Wall Street will be looking for positivity from PRIM as it approaches its next earnings report date. This is expected to be May 5, 2021. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $793 million, up 6.7% from the year-ago period.
PRIM's full-year Zacks Consensus Estimates are calling for earnings of $2.42 per share and revenue of $3.8 billion. These results would represent year-over-year changes of +8.04% and +8.95%, respectively.
Investors should also note any recent changes to analyst estimates for PRIM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.63% lower within the past month. PRIM is currently a Zacks Rank #3 (Hold).
Digging into valuation, PRIM currently has a Forward P/E ratio of 13.61. For comparison, its industry has an average Forward P/E of 15.27, which means PRIM is trading at a discount to the group.
The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PRIM in the coming trading sessions, be sure to utilize Zacks.com.
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