Image Source: Pixabay

Summary

• Primo Brands Corporation (PRMB) shows strong technical indicators, including 88% technical buy signals, a 93.85% gain in the last year, and a Trend Seeker buy signal.
• The company operates a diverse portfolio of branded beverages and offers multiple water solutions, with a market cap of $13.42 billion and a P/E ratio of 41.51.
• Wall Street analysts are bullish with 5 strong buy ratings and a consensus price target of $43, while Value Line and CFRA advise caution.
• Despite strong momentum, MorningStar and Seeking Alpha highlight concerns about overvaluation and profitability, suggesting a cautious, diversified investment approach.

The Chart of the Day belongs to the bottled beverage company Primo Waters (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.

PRMB Price vs Daily Moving Averages:

(Click on image to enlarge)

PRMB (Barchart)

Primo Brands Corporation operates as a branded beverage company 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 has a portfolio of packaged branded beverages under the Poland Spring, Pure Life, Saratoga, Mountain Valley, Arrowhead, Deer Park, Ice Mountain, Ozarka, and Zephyrhills brands; purified brands, including Primo Water and Sparkletts; and flavored and enhanced brands, such as AC+ION and Splash Refresher. It distributes to direct-to-consumer, retail, residential, eCommerce, on-premise, and commercial channels. The company was formerly known as BlueTriton Brands, Inc. and changed its name to Primo Brands Corporation in November 2024. The company was founded in 1976 and is based 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:

• 88% technical buy signals
• 95.29+ Weighted Alpha
• 93.85% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 4 new highs and up 4.78% in the last month
• Relative Strength Index 68.32%
• Technical support level at $34.56
• Recently traded at $35.30 with 50 day moving average of $32.86

Fundamental Factors:

• Market Cap $13.42 billion
• P/E 41.51
• Dividend yield 3.37%
• Revenue expected to grow 3.04% this year and another 4.26% next year
• Earnings estimated to increase 100.47% this year and an additional 20.78% 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 5 strong buy and 1 buy opinion on the stock with price targets between $40 and $48 with a consensus of $43 for a 21% gain
• Value Line has a cautious warning:" 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. "
• CFRAs MarketScope give the stock a sell rating
• MorningStar thinks the stock is 13% over valued but comments:"  The stock currently trades at a 13% premium over our quantitative fair value estimate of 31.23 USD per share; however, this estimate should be taken with a pinch of salt due to its very high uncertainty rating. The company's lack of profitability weakens our quantitative valuation. Companies with low profitability are often less resilient in recessions and are likely to generate weaker future cash flows for shareholders.  "
• 5,910 investors monitor the stock on Seeking Alpha which rates the stock a hold while Seeking Alpha rates the stock a hold

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