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Are Investors Undervaluing Primoris Services (PRIM) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is PRIM's P/B ratio of 2.26. 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 3. PRIM's P/B has been as high as 2.42 and as low as 1.30, with a median of 1.64, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.47. This compares to its industry's average P/S of 0.7.
Finally, our model also underscores that PRIM has a P/CF ratio of 11.57. 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. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 13.96. Over the past year, PRIM's P/CF has been as high as 12.41 and as low as 6.57, with a median of 8.45.
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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Are Investors Undervaluing Primoris Services (PRIM) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is PRIM's P/B ratio of 2.26. 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 3. PRIM's P/B has been as high as 2.42 and as low as 1.30, with a median of 1.64, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.47. This compares to its industry's average P/S of 0.7.
Finally, our model also underscores that PRIM has a P/CF ratio of 11.57. 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. PRIM's current P/CF looks attractive when compared to its industry's average P/CF of 13.96. Over the past year, PRIM's P/CF has been as high as 12.41 and as low as 6.57, with a median of 8.45.
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.