Trade-Ideas LLC identified

Primoris Services

(

PRIM

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Primoris Services as such a stock due to the following factors:

  • PRIM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.1 million.
  • PRIM has traded 1.7163999999999999257482841130695305764675140380859375 options contracts today.
  • PRIM is making at least a new 3-day high.
  • PRIM has a PE ratio of 34.
  • PRIM is mentioned 0.48 times per day on StockTwits.
  • PRIM has not yet been mentioned on StockTwits today.
  • PRIM is currently in the upper 20% of its 1-year range.
  • PRIM is in the upper 35% of its 20-day range.
  • PRIM is in the upper 45% of its 5-day range.
  • PRIM is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on PRIM:

Primoris Services Corporation, a specialty contractor and infrastructure company, provides a range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services in the United States and internationally. The stock currently has a dividend yield of 0.9%. PRIM has a PE ratio of 34. Currently there are 3 analysts that rate Primoris Services a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Primoris Services has been 241,000 shares per day over the past 30 days. Primoris Services has a market cap of $1.2 billion and is part of the industrial goods sector and materials & construction industry. Shares are up 10.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Primoris Services as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including premium valuation, poor profit margins and disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 18.3%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 40.6% when compared to the same quarter one year prior, rising from $8.93 million to $12.56 million.
  • PRIMORIS SERVICES CORP has improved earnings per share by 41.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PRIMORIS SERVICES CORP reported lower earnings of $0.71 versus $1.22 in the prior year. This year, the market expects an improvement in earnings ($1.20 versus $0.71).
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Construction & Engineering industry and the overall market on the basis of return on equity, PRIMORIS SERVICES CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.

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