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Primoris (PRIM) Touches Fresh 52-Week High at $25.25

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Shares of Primoris Services Corporatio n PRIM scaled a new 52-week high of $25.25 on Mar 18, eventually closing lower at $25.13. The new high came on the back of benefits expected from project execution and backlog growth.

Primoris has a market cap of $1.3 billion. Average volume of shares traded over the last three months is around 228K. The company's stock flaunts a one-year return of about 43% and a year-to-date return of around 14%.

Growth Drivers

Primoris' earnings increased 41% year over year to 24 cents per share in the fourth quarter of 2015. Revenues also rose 2% year over year, aided by an improvement in the East and West Construction Services segments.

The company's total backlog was $2.1 billion as of Dec 31, 2015, up 4.8% from 2014 end. Growth in Master Services Agreements (MSAs) work aided total backlog growth. Primoris' prospects to continue winning new awards are very strong, especially in the pipeline, power and industrial sectors of the oil, gas and chemical markets.

The company believes that it has the financial and operational strength to meet short-term challenges, and remains optimistic about longer term opportunities. Primoris expects that continuing safety enhancements to the gas utility infrastructure will provide opportunities for ARB Underground operations, especially in California, as well as Q3C in the Midwest.

Further, the passing of longer term highway funding by the federal government in 2015 and voter approval of a highway funding proposition in Texas will offer greater opportunity for Primoris' heavy civil and highway groups.

The company expects continued construction opportunities for both base-load and peak shaving power plants. Primoris also stated that its board of directors has declared a 5.50 cent per share cash dividend, payable on or about Apr 15, 2016.

Stocks to Consider

Some well-ranked stocks in the same sector worth considering include Grana y Montero S.A.A. GRAM , Headwaters Incorporated HW and Jiangsu Expressway Co. Ltd. JEXYY . All three stocks sport a Zacks Rank #1 (Strong Buy).

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HEADWATERS INC (HW): Free Stock Analysis Report

GRANA Y MONTERO (GRAM): Free Stock Analysis Report

PRIMORIS SERVCS (PRIM): Free Stock Analysis Report

JIANSU EXPWY CO (JEXYY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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