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Are Investors Undervaluing Primoris Services (PRIM) Right Now?
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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 16.80 right now. For comparison, its industry sports an average P/E of 17.38. Over the past 52 weeks, PRIM's Forward P/E has been as high as 22.17 and as low as 13.83, with a median of 17.55.
Investors should also recognize that PRIM has a P/B ratio of 2.84. The P/B is a method of comparing a stock's market value to 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 3.85. Within the past 52 weeks, PRIM's P/B has been as high as 3.52 and as low as 1.63, with a median of 2.31.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.61. This compares to its industry's average P/S of 0.75.
Finally, investors should note that PRIM has a P/CF ratio of 14.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.52. Within the past 12 months, PRIM's P/CF has been as high as 18.50 and as low as 8.81, with a median of 11.86.
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?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 company value investors might notice is Primoris Services (PRIM - Free Report) . PRIM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 16.80 right now. For comparison, its industry sports an average P/E of 17.38. Over the past 52 weeks, PRIM's Forward P/E has been as high as 22.17 and as low as 13.83, with a median of 17.55.
Investors should also recognize that PRIM has a P/B ratio of 2.84. The P/B is a method of comparing a stock's market value to 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 3.85. Within the past 52 weeks, PRIM's P/B has been as high as 3.52 and as low as 1.63, with a median of 2.31.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.61. This compares to its industry's average P/S of 0.75.
Finally, investors should note that PRIM has a P/CF ratio of 14.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.52. Within the past 12 months, PRIM's P/CF has been as high as 18.50 and as low as 8.81, with a median of 11.86.
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.