Primoris Services (PRIM) Surges 11.97% on Earnings Beat and Analyst Upgrade – Is This the Start of a New Bull Run?

Summary
• Primoris Services (PRIM) rockets 11.97% intraday to $104.23, breaking its 52-week high of $112.68
• Q2 earnings smash estimates with $1.68/share adjusted EPS, 20.9% revenue growth to $1.89B
• DA Davidson reiterates Buy rating with $85 price target, despite stock trading at $104.23

Primoris Services (PRIM) is experiencing a seismic intraday rally, surging 11.97% to $104.23 as of 5:12 PM EDT. The stock’s explosive move follows a blockbuster Q2 earnings report that exceeded both top-line and bottom-line estimates, coupled with a bullish analyst upgrade. With the stock trading near its 52-week high of $112.68 and volume surging 146% above average, investors are scrambling to decipher whether this is a breakout moment or a short-lived spike.

Earnings Surge and Analyst Upgrade Ignite PRIM’s Rally
Primoris Services’ 11.97% intraday surge is directly tied to its Q2 earnings report, which revealed adjusted earnings of $1.68/share—well above the $1.33 consensus—and 20.9% revenue growth to $1.89 billion. DA Davidson’s reiteration of a Buy rating with an $85 price target (despite the stock trading at $104.23) further fueled momentum. The firm highlighted robust performance in the Utilities segment and raised full-year guidance to $4.90–$5.10/share. These catalysts, combined with a PEG ratio of 0.58, positioned PRIM as a high-conviction growth play in the engineering & construction sector.

Engineering & Construction Sector Volatility as PRIM Outpaces Peers
While Primoris Services (PRIM) surged 11.97%, the broader engineering & construction sector showed mixed performance. Quanta Services (PWR), the sector leader, fell 1.29%, while peers like MasTec (MTZ) and Sterling Infrastructure (STRL) lagged with declines of 0.16% and gains of 9.93%, respectively. PRIM’s outperformance underscores its unique positioning in high-growth infrastructure segments, particularly as it capitalizes on energy transition and utility modernization projects.

Options and ETF Playbook: Leveraging PRIM’s Momentum with Precision
• 200-day MA: $73.65 (well below current price) • RSI: 68.97 (overbought) • MACD: 3.64 (bullish) • Bollinger Bands: Price at 95.77 (upper band) • Gamma: 0.0388 (high sensitivity) • Theta: -0.3789 (rapid time decay)

Primoris Services is trading in a high-momentum phase, with technicals suggesting a potential pullback after hitting overbought territory. Key levels to watch include the 52-week high of $112.68 and the 200-day MA at $73.65. For leveraged exposure, consider boldETFs like boldXLB (Materials Select Sector SPDR) if the sector gains traction. However, the options chain offers more targeted opportunities.

Top Option 1: PRIM20250815C105
• Code: PRIM20250815C105 • Type: Call • Strike: $105 • Expiry: 8/15 • IV: 49.49% (moderate) • Leverage: 32.53% • Delta: 0.4821 (moderate) • Theta: -0.3276 (high decay) • Gamma: 0.0446 (high sensitivity) • Turnover: 15,887
• IV: Implied volatility suggests moderate demand • Leverage: High potential for price amplification • Delta: Sensitive to price moves • Theta: Aggressive time decay • Gamma: High responsiveness to price swings
This call option offers a balance of leverage and liquidity, ideal for a 5% upside scenario. Projected payoff: max(0, $109.44 - $105) = $4.44/share. Aggressive bulls may consider this for a short-term trade.

Top Option 2: PRIM20250919C90
• Code: PRIM20250919C90 • Type: Call • Strike: $90 • Expiry: 9/19 • IV: 48.78% • Leverage: 6.39% • Delta: 0.8298 (high) • Theta: -0.1078 (moderate decay) • Gamma: 0.0140 (low sensitivity) • Turnover: 1,023,341
• IV: Suggests strong market expectations • Leverage: Lower but stable • Delta: High sensitivity to price • Theta: Moderate time decay • Gamma: Low responsiveness
This deep-in-the-money call offers downside protection and is ideal for a longer-term hold. Projected payoff: max(0, $109.44 - $90) = $19.44/share. Conservative investors may favor this for capital preservation.

Hook: If $112.68 breaks, PRIM20250815C105 offers explosive upside. Aggressive bulls may consider PRIM20250919C90 into a bounce above $100.

Backtest Primoris Services Stock Performance
The 12% intraday surge in Primoris Services Co. (NASDAQ: PRIM) presents an intriguing case for backtesting its performance over various time frames to gauge potential continuation or reversal patterns. Historical data reveals mixed signals:1. Short-Term Momentum (3-5 Days): The 12% move aligns with a historical 65% success rate for KDJ golden cross signals in large-cap tech stocks, suggesting a strong likelihood of continued momentum within the next 3-5 trading days. This supports a bullish outlook for PRIM in the short term.2. Medium-Term Momentum (7-14 Days): However, the success rate drops to 50% over a 7-14 day period, indicating a higher probability of consolidation or a pullback after the initial surge. This cautionary signal suggests that while PRIM may continue to rise, it could also face resistance or experience a correction in the coming days.3. Long-Term Performance (30 Days): Extending the view to a 30-day period, the historical data shows a 75% success rate for KDJ signals in large-cap tech stocks. This implies that if the current momentum continues, PRIM could maintain its upward trajectory over the longer term. However, this depends on sustained buying pressure and positive market sentiment.In conclusion, while the 12% intraday surge in PRIM presents a strong short-term bullish signal, investors should remain cautious due to potential consolidation or a pullback in the medium term. The long-term outlook remains positive but requires ongoing monitoring of the stock's performance and broader market conditions.

PRIM’s Rally: A New Bull Phase or a Correction Setup?
Primoris Services’ 11.97% surge is a testament to its earnings strength and analyst optimism, but technicals suggest caution. The stock is overbought (RSI 69) and near its 52-week high, raising the risk of a pullback. Investors should monitor the 200-day MA at $73.65 and sector leader Quanta Services (PWR), which fell 1.29%. For now, the options chain offers precise tools to navigate this volatility. Watch for a breakdown below $100 or a breakout above $112.68 to confirm the trend’s direction.