Can Perimeter Solutions, SA (PRM) Run Higher on Rising Earnings Estimates?

Core Viewpoint - Perimeter Solutions, SA (PRM) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding the earnings prospects of Perimeter Solutions, leading to higher earnings estimates, which are expected to positively influence the stock price [2]. - The earnings estimate for the current quarter is $0.09 per share, reflecting a decrease of 30.8% compared to the previous year, but the Zacks Consensus Estimate has increased by 50% over the last 30 days with no negative revisions [6]. - For the full year, the earnings estimate stands at $1.36 per share, representing a 22.5% increase from the previous year, with a consensus estimate increase of 11.48% due to positive revisions [7][8]. Zacks Rank and Performance - Perimeter Solutions has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock price outperformance [3][9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][9]. Recent Stock Performance - Over the past four weeks, shares of Perimeter Solutions have increased by 10.3%, suggesting investor confidence in the company's earnings growth prospects driven by favorable estimate revisions [10].