Primoris (PRIM) wins $170m heavy civil project, aid backlog – July 6, 2022

Primoris service company (PRIM Free Report) received a heavy civil project of over $170 million from the Texas Department of Transportation. Shares of this leading specialty contractor rose 2.12% in the July 5 after-hours trading session.

Under the agreement, Primoris’ Energy/Renewables business will build a section of Highway 59 in Polk County, Texas. It is expected to start in the third quarter of 2022 and end in the fourth quarter of 2024.

Continuous flow of energy/renewable contracts: a boon

Primoris – a Zacks #1 (Strong Buy) tier company – reaped the benefits of strong project execution in the Energy/Renewables segment, which accounted for 45.8% of Q1 revenue. In June, Primoris won a $260 million solar project. It won two solar projects worth $130 million and $120 million in May and two projects with a combined value of more than $155 million in April.

It should be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased by 2% in the first quarter, supported by increased activity in the field of renewable energies, partially offset by a decline in activity on industrial projects in 2022. The segment’s total backlog at the end of March was $2,433 million, compared to $1,386 million a year ago.

Year-to-date, the shares of this leading specialty contractor have outperformed the industry of Zacks Building Products – Heavy Construction. The company enjoys strong performance in both segments – Utilities and Energy/Renewables. Biden’s renewable energy campaign is expected to boost the company’s growth.

Image source: Zacks Investment Research

You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Top-Ranking Construction Stocks

Weyerhaeuser Company (Wyoming Free Report) is one of America’s leading forest products companies. This Zacks Tier 1 stock has benefited from strong new home construction activity, which in turn is leading to improved demand. Additionally, its focus on operational excellence has paid off over time.

The Zacks consensus estimate for WY’s earnings in 2022 rose to $3.20 per share from $2.83 over the past 30 days.

Boise, based on identification Boise Cascade Company (Bcc Free Report) – which currently carries a Zacks Rank #2 – is helped by favorable commodity wood products, pricing and robust construction activity.

BCC’s earnings estimate for 2022 rose to $18.43 per share from $15.07 in the past 30 days.

Based in Jacksonville, Florida Rayonnier Inc. (RYN Free Report) is well positioned to capitalize on robust domestic demand trends, with a strong portfolio of forest land in some of the most productive forest regions in the US South, Pacific Northwest and New Brunswick. Zeeland. This will help the company improve export market conditions and create a favorable price environment. RYN is also focused on adding high quality forest land to its portfolio through acquisitions.

The No. 2 Zacks Rank player’s consensus 2022 earnings estimate has seen an upward revision from 61 cents per share to 65 cents in the past 30 days.


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