PRIMORIS SERVICES CORP (NYSE:PRIM) Emerges as a High-Growth Momentum Stock with Strong Fundamentals and Technical Setup

Investors looking for high-growth momentum stocks with solid technical setups often focus on companies showing faster earnings, strong sales growth, and positive price movement. The ChartMill High Growth Momentum (HGM) Rating merges these fundamental and technical elements into one score, assisting traders in finding stocks that fit strategies such as CANSLIM or Minervini’s trend-following method. These approaches highlight stocks with notable earnings momentum, upward estimate changes, and breakout potential, qualities that frequently lead to substantial price gains.

PRIMORIS SERVICES CORP (NYSE:PRIM) appears as a strong candidate matching these standards, with an HGM Rating of 6, a Technical Rating of 10, and a Setup Rating of 7. Here’s why the stock might interest growth-focused traders:

Fundamental Growth Momentum

• Earnings Growth: PRIM has reported year-over-year EPS growth of 62.1% (TTM), with recent quarterly growth rates of 61.5% (last quarter) and 108.5% (previous quarter). This upward trend points to better profitability.
• Sales Expansion: Revenue growth stays steady, with a 15.1% rise over the past year and quarterly sales growth consistently exceeding 14%. The latest quarter saw a 20.9% increase, signaling ongoing demand.
• Free Cash Flow Jump: Free cash flow per share rose by an exceptional 2,134.9% over the past year, highlighting efficient operations and strong cash generation.
• Positive Revisions & Surprises: Analysts have increased next-year EPS estimates by 3.96% in the last three months, while the company has surpassed earnings estimates by an average of 41.1% over the past four quarters.

These figures match the HGM Rating’s emphasis on earnings momentum, upward estimate changes, and faster growth, critical factors for momentum investors.

Technical Strength & Setup Quality

PRIM’s near-perfect Technical Rating of 10 reflects its steady uptrend across various timeframes. Key technical points include:

• Trend Strength: Both short-term and long-term trends are favorable, with the stock performing better than 95% of the market over the past year.
• Relative Strength: PRIM ranks in the top 9% of its industry (Construction & Engineering), demonstrating leadership in a competitive field.
• Support Levels: The stock has clear support zones, including a near-term range between $109.67 and $111.92, supported by rising moving averages.

While the Setup Rating of 7 indicates some volatility, the stock’s pause near its 52-week high ($115.99) offers a possible breakout chance. A clear move above $116 could suggest further gains, with support acting as a logical stop-loss area. For a more detailed look at the technicals, see the full technical report here.

Why This Combination Matters

High-growth momentum strategies succeed when solid fundamentals align with positive technicals. PRIM’s faster earnings, cash flow growth, and upward estimate changes provide the fundamental basis, while its technical strength indicates institutional interest and trend continuation. The current setup offers a balance—a pause after a strong run, with a clear breakout level that could attract more buyers.

Find More High-Growth Momentum Setups

For traders searching for similar opportunities, the High Growth Momentum Breakout Setups Screen filters for stocks with HGM Ratings above 4, strong technicals, and actionable patterns.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and apply risk management strategies before trading.