Primoris Services Corporation (PRIM) shares are trading at a premium compared to the industry average, with a forward P/E ratio of 22.8X. Despite concerns, the stock hit a 52-week high of $120.22 on Aug. 29, reflecting strong momentum and a 56.3% gain in the past three months.

PRIM trades at a discount compared to competitors like EMCOR Group, Quanta Services, and MasTec, with a forward P/E multiple of 22.8X. The company benefits from rising demand for renewable energy projects, data center exposure, and a record backlog, providing strong growth visibility.

Primoris Services is capitalizing on the expanding renewables market and preparing bids for natural gas generation projects. The company is also leveraging data center and fiber opportunities, with a robust pipeline of projects and supportive legislation for tax incentives, positioning them as a leading contractor in these markets.

A strong backlog of $11.5 billion at the end of Q2 2025 reflects Primoris Services’ ability to secure new work and provides revenue visibility. The company has reduced its debt and improved cash flow, with analysts projecting upside in earnings per share estimates for 2025 and 2026.

Despite the premium valuation, PRIM’s fundamentals, growth prospects, and financial position support its current trading levels. With a Zacks Rank #2 (Buy) and upward earnings revisions, the stock offers potential for further growth. Investors looking for long-term opportunities may find value in PRIM even at its current premium valuation.

Read more at Nasdaq: Is Primoris Services Stock Worth Buying at a Premium P/E Valuation?