Primoris ServicesNASDAQ: PRIM

Does Primoris Services (PRIM) have what it takes to be a top stock pick for momentum investors? Let's find out.

Primoris Services (PRIM) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.

Primoris Services is primed for growth, leveraging the Inflation Reduction Act to capitalize on green energy trends, with a substantial, likely undervalued solar project backlog extending to 2025. The company's unique strategy focuses on smaller, under-50 MWh utility-scale solar projects, ensuring less competition and higher margins, while IRA incentives enhance the viability of these projects. Despite higher leverage, Primoris mitigates risks through interest rate hedges and accounts receivable financing, offering a deep value investment opportunity with its SaaS-like growth and compelling valuation metrics.

Primoris Services Corporation has shown strength in its top line, with a significant increase in backlog and revenue growth of 38% YoY. PRIM operates in three segments, specializing in fabrication, construction, replacement, and engineering solutions for various industries. While there are risks associated with a high concentration of clients, the upside potential outweighs it, especially with the expected construction and manufacturing boom in the US.

Primoris' revenue and operating income (LTM) are both at record highs since 2014. Its backlog recently hit a new record as well. Its P/S, P/E, and P/B (quarterly) valuation multiples are all near record lows since 2014. The firm's P/S ratio is below 1, standing at 0.31. The energy segment achieved a strong book-to-bill ratio of 2.3 and saw its booking exceed $1.8b.

Does Primoris Services (PRIM) have what it takes to be a top stock pick for momentum investors? Let's find out.

Primoris Services (PRIM) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.

Primoris Services (PRIM) came out with quarterly earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.48 per share a year ago.

If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, Primoris Services (PRIM) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.