A Fresh Look at Primoris Services’s Valuation After Standout Growth and Data Center Expansion Potential

Primoris Services (PRIM) just delivered results that are catching serious attention, especially for anyone debating whether now is the right time to get in or lock in gains. The company’s recent quarter showcased standout performance in its Utilities and Energy segments, supported by accelerated renewables activity and a substantial project backlog that suggests strong revenue visibility for years ahead. In addition, management is eyeing a new wave of growth by targeting nearly $1.7 billion in potential data center-related work, tapping into one of today’s fastest-expanding infrastructure markets. All of this reflects a clear sense of upward momentum, subtly reinforced by analyst estimate upgrades that indicate growing confidence in the company’s trajectory.

Zooming out, shares of Primoris have gained more than 131% over the past year, with momentum that has increased further this past quarter. The last three months alone saw a jump of 73%, marking a notable rise. While news about the company’s strong operational performance and backlog underpins recent enthusiasm, investor optimism also appears driven by anticipation that future revenue pipelines, particularly from renewables and data center infrastructure, may continue to grow.

With this recent run-up and the growth story building, is Primoris Services still attractively valued for new investors, or is the market already pricing in everything on the horizon?

Most Popular Narrative: 3.8% Overvalued

The prevailing narrative suggests that Primoris Services currently trades a little above its estimated fair value. Analysts see strong multi-year growth potential, but caution that the stock price might be factoring in much of this optimism already.

End-market mix shift toward higher-growth areas, data center infrastructure, fiber networks, and energy transmission & distribution are expected to support ongoing margin and multiple expansion.

Want to know what’s fueling this ambitious valuation? The analysts’ story hints at bold growth assumptions and future profit multiples rarely seen in this sector. Intrigued to uncover the precise financial groundwork shaping this call? Dive into the full narrative to discover which earnings, margins, and revenue forecasts underpin this hotly debated fair value.

Result: Fair Value of $127.56 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain. Primoris’s heavy reliance on competitive data center and renewables markets, and potential margin pressures, could quickly challenge the upbeat outlook.

Find out about the key risks to this Primoris Services narrative.

Another View: The SWS DCF Model Tells a Different Story

While analyst estimates point to an overvalued stock, our SWS DCF model offers a different perspective. It suggests Primoris could actually be priced above its true worth. Why do these two methods diverge so sharply?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Primoris Services to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Primoris Services Narrative

If this story doesn't fully reflect your own perspective, or if you'd rather dig into the numbers yourself, you can craft your own analysis in just minutes. Do it your way.

A great starting point for your Primoris Services research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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