Primoris Services (PRIM) stock is in focus after a shareholder class action lawsuit claimed the company underestimated costs and risks on fixed price renewable energy projects and provided unreliable information on project execution and financial guidance.

The recent lawsuit arrives after a sharp loss of momentum for Primoris Services, with the share price at $83.05 and a year to date share price return down 36.41%. While the 3 year total shareholder return of 143.20% and 5 year total shareholder return of 247.77% remain strong on a longer view, the 90 day share price return down 20.68% and 1 year total shareholder return down 26.16% suggest sentiment has cooled despite the maintained 2026 guidance and ongoing dividend payments.

If legal and project risk is front of mind after reading about Primoris Services, it may help to compare with other infrastructure linked opportunities through our power grid and energy infrastructure stock screener. You can start with 40 power grid technology and infrastructure stocks.

Primoris Services has grown into a large US infrastructure contractor with more than US$7.2b in annual revenue. Yet the recent share price pullback and lawsuit driven uncertainty leave a simple question hanging: Is the stock now priced fairly for what investors actually get?

Most Popular Narrative: 31% Undervalued

Primoris Services last closed at $83.05 compared with a widely followed fair value narrative of $119.79, which frames the current pullback as a valuation gap rather than a settled verdict.

The accelerating build-out of renewable energy and battery storage infrastructure across North America continues to drive record renewables revenue and backlog for Primoris, positioning the company to benefit from multi-year secular demand tailwinds, supporting sustained revenue growth and long-term earnings visibility.

Want to see what is baked into that $119.79 figure? Revenue growth, margin expansion and earnings expectations all play a role. The twist is how those pieces combine into one long term earnings profile that differs from today. The narrative spells out the path in detail.

Result: Fair Value of $119.79 (UNDERVALUED)

However, investors still need to weigh execution risk in Primoris Services' renewables projects, as well as the legal uncertainty from ongoing securities class action lawsuits.

Next Steps

After weighing both the lawsuit concerns and the longer term fair value case around Primoris Services, it makes sense to check the underlying data yourself and not wait too long to form your own view. To see how the current mix of risks and potential rewards stacks up in one place, review the 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Primoris Services?

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• Target potential mispricings by scanning a focused set of companies that screen as 53 high quality undervalued stocks.
• Strengthen your income stream by reviewing stocks highlighted as 10 dividend fortresses.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.