Shares of Perimeter Solutions, SA (PRM) have been strong performers lately, with the stock up 30.1% over the past month. The stock hit a new 52-week high of $27.89 in the previous session. Perimeter Solutions, SA has gained 117.3% since the start of the year compared to the 24.3% move for the Zacks Basic Materials sector and the -1.7% return for the Zacks Chemical - Specialty industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 30, 2025, Perimeter Solutions, SA reported EPS of $0.82 versus consensus estimate of $0.68.
For the current fiscal year, Perimeter Solutions, SA is expected to post earnings of $1.36 per share on $639.71 in revenues. This represents a 22.52% change in EPS on a 14.04% change in revenues. For the next fiscal year, the company is expected to earn $1.46 per share on $665 in revenues. This represents a year-over-year change of 7.35% and 3.95%, respectively.
Valuation Metrics
Perimeter Solutions, SA may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Perimeter Solutions, SA has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.9X. On a trailing cash flow basis, the stock currently trades at 18.4X versus its peer group's average of 12X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Perimeter Solutions, SA currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Perimeter Solutions, SA meets the list of requirements. Thus, it seems as though Perimeter Solutions, SA shares could have potential in the weeks and months to come.
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Perimeter Solutions, SA (PRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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