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Should Value Investors Buy Primoris Services (PRIM) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.08. This compares to its industry's average Forward P/E of 11.95. Over the last 12 months, PRIM's Forward P/E has been as high as 11.83 and as low as 6.08, with a median of 9.81.
We should also highlight that PRIM has a P/B ratio of 0.88. 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. PRIM's current P/B looks attractive when compared to its industry's average P/B of 1.76. Within the past 52 weeks, PRIM's P/B has been as high as 1.58 and as low as 0.88, with a median of 1.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRIM has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.51.
Finally, we should also recognize that PRIM has a P/CF ratio of 4.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.63. Over the past 52 weeks, PRIM's P/CF has been as high as 7.10 and as low as 4.23, with a median of 6.08.
These are only a few of the key metrics included in Primoris Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PRIM looks like an impressive value stock at the moment.
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Should Value Investors Buy Primoris Services (PRIM) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.08. This compares to its industry's average Forward P/E of 11.95. Over the last 12 months, PRIM's Forward P/E has been as high as 11.83 and as low as 6.08, with a median of 9.81.
We should also highlight that PRIM has a P/B ratio of 0.88. 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. PRIM's current P/B looks attractive when compared to its industry's average P/B of 1.76. Within the past 52 weeks, PRIM's P/B has been as high as 1.58 and as low as 0.88, with a median of 1.33.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRIM has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.51.
Finally, we should also recognize that PRIM has a P/CF ratio of 4.23. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.63. Over the past 52 weeks, PRIM's P/CF has been as high as 7.10 and as low as 4.23, with a median of 6.08.
These are only a few of the key metrics included in Primoris Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PRIM looks like an impressive value stock at the moment.