Primo Brands - More Than Just Water

PRMB

Summary

  • Primo Brands (PRMB) shows strong technical indicators: 100% buy signals, 116.72% gain in the last year, and above key moving averages.

  • Fundamental metrics are promising: Market cap $12.05B, P/E 39.33, dividend yield 3.99%, with revenue and earnings expected to grow next year.

  • Wall Street analysts are optimistic with 4 strong buy and 3 buy ratings, and a consensus price target of $36, an 11.50% gain.

  • Despite positive signals, Value Line advises caution due to recent merger with Blue Triton; investors should adopt a wait-and-see approach.

The Chart of the Day belongs to the hydration beverage company Primo Brands (PRMB) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/14 the stock gained 29%.

PRMB Price vs Daily Moving Averages:

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Primo Brands Corporation operates as a branded beverage company with focus on healthy hydration in North America. It offers solutions through water dispensers, direct delivery of refillable/reusable bottles, pre-filled Water exchange program, and water Filtration appliances, as well as operates self-service water refill stations. The company distributes to direct-to-consumer, retail channels, residential, eCommerce, On-premise, and commercial. The company is headquartered in Tampa, Florida. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 116.00+ Weighted Alpha
  • 116.72% gain in the last year
  • Trend Seeker buy signal
  • 1.09 - 60 month Beta
  • Above its 20, 50 and 100 day moving averages
  • 4 new highs and up 5.06% in the last month
  • Relative Strength Index 66.75%
  • Technical support level at $31.28
  • Recently traded at $32.29 with 50 day moving average of $29.00

Fundamental Factors:

  • Market Cap $12.05 billion
  • P/E 39.33
  • Dividend yield 3.99%
  • Revenue expected to grow 4.42% next year
  • Earnings estimated to increase 9.06% next year

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall street analysts issued 4 strong buy and 3 buy opinions on the stock
  • Their price targets are between $32 and $40
  • The consensus price target is $36 or an 11.50% gain
  • Value Line has suspended its rating and has a lot to say:"Primo Water Corporation has merged with Blue Triton, and the company has been renamed Primo Brands Corp. (the ticker is now PRMB).  The deal is expected to unlock immense value within the healthy hydration arena.  We have suspended the Timeliness Rank on these shares as the equity does not appear to be trading on business fundamentals. We would advise investors to adopt a wait-and-see approach for now as investment merits should emerge moving forward."
  • CFRA's MarketScope has a hold recommendation
  • MorningStar thinks the stock is fairly valued
  • 5,690 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.


On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.