3 Reasons Why Primoris Services (PRIM) Is a Great Growth Stock

Core Insights - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to associated risks and volatility [1] - The Zacks Growth Style Score system simplifies the identification of promising growth stocks, with Primoris Services (PRIM) currently recommended due to its favorable Growth Score and top Zacks Rank [2] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable; Primoris Services has a historical EPS growth rate of 17.2% and a projected EPS growth of 41.7% this year, surpassing the industry average of 29.5% [4][5] Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks; Primoris Services has an S/TA ratio of 1.7, indicating it generates $1.7 in sales for every dollar in assets, compared to the industry average of 1.57 [6] Sales Growth - Sales growth is another critical factor; Primoris Services is expected to achieve a sales growth of 16.4% this year, exceeding the industry average of 12.7% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements; Primoris Services has seen an 8.1% increase in current-year earnings estimates over the past month [8][9] Conclusion - Primoris Services has achieved a Zacks Rank 1 and a Growth Score of A, positioning it well for potential outperformance, making it an attractive option for growth investors [11]