Perimeter Solutions, SA (PRM) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Perimeter Solutions, SA has shown significant stock performance, with a 122.3% increase since the beginning of the year, outperforming both the Zacks Basic Materials sector and the Zacks Chemical - Specialty industry [1] Financial Performance - The company reported an EPS of $0.82 in its last earnings report, exceeding the consensus estimate of $0.68 [2] - For the current fiscal year, earnings are expected to be $1.36 per share on revenues of $639.71 million, reflecting a 22.52% increase in EPS and a 14.04% increase in revenues [3] - For the next fiscal year, projected earnings are $1.46 per share on revenues of $665 million, indicating year-over-year changes of 7.35% and 3.95%, respectively [3] Valuation Metrics - Perimeter Solutions, SA trades at 20.9 times the current fiscal year EPS estimates, which is above the peer industry average of 18.9 times [7] - On a trailing cash flow basis, the stock trades at 18.8 times compared to the peer group's average of 12.4 times, suggesting it is not in the top tier from a value perspective [7] Style Scores and Zacks Rank - The company has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a VGM Score of B [6] - Perimeter Solutions, SA holds a Zacks Rank of 1 (Strong Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock aligns with the recommendation for investors to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, indicating potential for further price appreciation [9]