Bull of the Day: Primoris Services Corporation (PRIM)

The U.S. is kicking off a multi-trillion-dollar, multi-decade infrastructure spending boom across energy, utilities, AI data centers, and beyond that’s become one of the most dominant trends on Wall Street.Primoris Services Corporation (PRIM) stock is a top long-term buy-and-hold candidate and Monday’s Bull of the Day due to its ability to grow alongside the energy and utility infrastructure spending boom, spurred by the artificial intelligence arms race.PRIM shares have already soared over 430% in the past five years to outpace its highly-ranked Building Products-Heavy Construction space (top 2% of 245 Zacks industries) and crush the S&P 500's 95%.Despite the charge, which is part of a longer outperformance, Primoris Services trades at a solid discount to both the benchmark and its peers.The engineering, construction, and maintenance contractor is poised to surpass its early 2025 highs. Primoris Services is also projected to post solid double-digit earnings growth going forward, and its earnings revisions have surged to help it land a Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchPRIM Stock’s Energy and AI Infrastructure Growth UpsidePrimoris is a specialty contractor that provides engineering, construction, and maintenance services for critical infrastructure across utilities, energy, renewables, and beyond throughout North America.PRIM grew its revenue from under $500 million in 2009 to $6.4 billion in 2024, including 22% average sales growth in the past three years. The company posted strong earnings expansion during this period, including a surge over the past two years.PRIM operates across two core segments, Utilities and Energy, working to build and maintain everything from transmission, distribution, substations, and communication networks to natural gas plants and infrastructure, battery storage systems, and beyond. The company works with major public utilities, energy companies, oil and gas firms, solar developers, telecom providers, data center operators, and more.Image Source: Zacks Investment ResearchThe Dallas, Texas-headquartered firm closed the first quarter of 2025 with a $11.4 billion backlog. “We continue to see elevated levels of demand for our infrastructure services, particularly in meeting the utility and power generation needs of North America…” "The need to support increased electrification of industry, further investments in manufacturing, and the construction of facilities to support emerging technologies provides significant opportunities,” interim CEO David King said in prepared Q1 remarks.The AI-Boosted Infrastructure Spending BoomBig Tech capex is set to hit $250 billion in 2025 alone, with Microsoft set to spend $80 billion on AI Data centers just year. Generative AI platforms use 10X more energy compared to a Google search, with some data centers consuming the same amount of electricity as a midsize city. Goldman Sachs forecasted earlier this year that global power demand from AI data centers will surge 50% by 2027 and by as much as 165% by the end of the decade.This backdrop is why the U.S. is racing to expand the nuclear energy industry, increase natural gas supply, and build out electricity infrastructure. Energy utilities capex is projected to reach all-time highs between 2025 and 2027.The U.S. federal government and technology giants like Microsoft and Meta are attempting to jumpstart the energy and infrastructure spending spree to help support rapid AI growth, reshoring, including cutting-edge semiconductor plants construction, and beyond.Compounding megatrends across technology, energy, deglobalization, and more create a potential once-in-a-lifetime opportunity for investors to ride the wide-ranging infrastructure spending spree.PRIM’s Growth Outlook and Other Bullish SignalsPrimoris benefits directly from these secular spending trends across energy and utilities after years of underinvestment. The company grew its revenue by 11% in 2024, after averaging 28% sales growth in 2023 and 2022. PRIM is projected to grow its sales by roughly 7% in 2025 and 2026 to reach $7.24 billion next year.Primoris is projected to grow its adjusted earnings by 16% in FY25 and 14% in FY26, following 37% EPS expansion last year.Image Source: Zacks Investment ResearchThe energy infrastructure standout crushed our EPS estimates by an average of 45% in the past four quarters, and its upbeat bottom-line revisions have earned it a Zacks Rank #1 (Strong Buy). Its Most Accurate EPS estimate came in 7% above consensus for 2026, signaling ongoing momentum.The stock has gained more attention from Wall Street, climbing from four brokerage recommendations in late 2024 to 10 today. Better yet, nine of PRIM’s 10 brokerage recommendations are “Strong Buys.” The company also pays a dividend.Time for Long-Term Investors and Traders to Buy PRIMPRIM soared 190% in the past two years to blow away its highly-ranked industry’s 114%. This is part of a 1,100% charge in the past 15 years to top the Building Products - Heavy Construction industry’s 860% and the S&P 500’s 490%.It’s worth flagging again that the company’s Building Products-Heavy Construction area lands in the top 2% of 245 Zacks industries. This is important because studies have shown that roughly half of a stock's price movement can be attributed to its industry. Plus, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.Image Source: Zacks Investment ResearchPrimoris stock is on the verge of overtaking its January highs, which could push it into a new trading range. Buying PRIM ahead of a potential breakout is more enticing considering its impressive value compared to its peers, itself, and the S&P 500. The stock trades at a 13% discount to its highs, 11% vs. its industry, and 16% below the benchmark at 19.1X forward 12-month earnings. One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Primoris Services Corporation (PRIM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks