We recently published a list of Why These 15 Construction Stocks Are Plunging in 2025. In this article, we are going to take a look at where Primoris Services Corp (NYSE:PRIM) stands against other construction stocks that are plunging in 2025.
2025 is shaping up to be a pivotal moment for the construction industry. Not long ago, the sector was booming. Infrastructure construction stocks soared as government contracts poured in and a broader economic expansion fueled optimism. There were massive infrastructure and energy projects with endless growth potential, and companies tied to these projects thrived.
However, the pendulum has swung hard in the opposite direction. Today, the industry faces a stark slowdown, and those once-high-flying construction stocks are plunging. The U.S. GDP is expected to contract in Q1 2025, and residential and commercial projects are stalling as financing costs rise and demand weakens.
Looking ahead, the outlook is murky at best. Some experts predict a modest rebound in late 2025 if interest rates ease and loan activity picks up. But considering tariffs are only getting higher, this could drive up inflation again and cause interest rates to stay up.
These stocks have borne the brunt of the downturn. It’s worth looking into if you want a front-row seat to the industry’s ups and downs.
Methodology
For this article, I screened the worst-performing construction stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A construction site at dawn, a workers silhouetted in the morning sun, working on a utility plant.
Primoris Services Corp (NYSE:PRIM)
Number of Hedge Fund Holders In Q4 2024: 42
Primoris Services Corp (NYSE:PRIM) is an infrastructure services company that specializes in utilities, energy, and renewables.
The stock is down significantly so far in 2025 as there has been negative market sentiment following insider selling and concerns about the company’s ability to sustain revenue growth at historical levels.
Analysts also pointed out a slowdown in revenue growth forecasts for 2025 compared to prior years.
Analysts forecasted only a 5% revenue growth for 2025 compared to a historical average of 16%.
The consensus price target of $89.14 implies 55.08% upside.
PRIM stock is down 24.67% year-to-date.
Overall, PRIM ranks 10th on our list of construction stocks that are plunging in 2025. While we acknowledge the potential of PRIM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PRIM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
