Needham Identifies Potential in Two Underrated Energy Stocks Benefiting from the Data-Center Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 25 2025
0mins
Should l Buy PRIM?
Source: Yahoo Finance
AI and Data Center Boom: The surge in AI is driving significant investment in data center construction, with major tech companies like Microsoft, Amazon, Meta, and Alphabet spending nearly $360 billion to support their AI and cloud computing initiatives.
Energy Consumption Concerns: Data centers are projected to consume around 945 TWh of electricity by 2030, contributing to rising global electricity demand, primarily due to their power-hungry cooling and climate control systems.
Generac Holdings Overview: Generac, a leader in power generation solutions, is positioned to benefit from the data center boom, with a projected revenue increase tied to their industrial-strength generators and energy management products.
Primoris Services Potential: Primoris Services, a specialty contractor, is expanding its data center segment and has seen significant revenue growth, with a focus on sustainable infrastructure and energy solutions that support the data center industry.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy PRIM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on PRIM
Wall Street analysts forecast PRIM stock price to rise
12 Analyst Rating
7 Buy
4 Hold
1 Sell
Moderate Buy
Current: 143.500
Low
125.66
Averages
152.07
High
175.00
Current: 143.500
Low
125.66
Averages
152.07
High
175.00
About PRIM
Primoris Services Corporation is a provider of critical infrastructure services to the utility, energy, and renewables markets throughout the United States and Canada. The Company provides a range of construction, maintenance, replacement, fabrication, and engineering services to a diversified base of customers through its two segments: Utilities, and Energy. The Utilities segment offers services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communications systems. The Energy segment operates throughout the United States and Canada and specializes in a range of services that include engineering, procurement, construction, and maintenance services for entities in the energy, renewable energy and energy storage, renewable fuels, and petroleum and petrochemical industries, as well as state departments of transportation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Putnam PanAgora ESG ETF Sees Major Unit Outflow
- Unit Outflow Situation: The Putnam PanAgora ESG International Equity ETF experienced an outflow of 125,000 units this week, representing a 35.7% decline compared to the previous week, indicating a significant drop in investor confidence that could impact future inflows and market performance.
- Market Performance Volatility: In morning trading, ASML Holding's stock fell approximately 2.2%, while Barclays rose about 0.4%, reflecting varied market reactions to different stocks, which may affect the overall performance of the ETF and the stability of its portfolio.
- Investor Sentiment Shift: The significant outflow may lead investors to question the effectiveness of ESG investment strategies, prompting fund management to reassess their investment approaches to restore investor confidence.
- Industry Impact Assessment: This outflow could have a ripple effect across the ESG investment sector, prompting other fund managers to focus on liquidity management and investor relations to address challenges posed by market fluctuations.
See More
Primoris Q4 Earnings Beat Expectations Despite Stock Decline
- Significant Revenue Growth: Primoris reported Q4 revenues of $1.86 billion, reflecting a 6.7% year-over-year increase that exceeded analyst expectations by 3.3%, showcasing the company's robust performance in utility and energy infrastructure despite economic uncertainties.
- Improved Profitability: The company also surpassed expectations in adjusted operating income, indicating successful cost control and operational efficiency, although its stock has declined by 13.7% since the earnings report, currently trading at $142.88.
- Strong Industry Performance: The 12 tracked construction and maintenance services companies collectively beat analyst consensus revenue estimates by 4.7%, demonstrating resilience in the sector amidst rising interest rates, with an average stock decline of 9.6%.
- Optimistic Future Outlook: CEO Koti Vadlamudi emphasized the company's progress in achieving multi-year goals and enhancing capital allocation capabilities, suggesting potential growth opportunities ahead, despite the current bearish market sentiment.
See More
Goodlander Investment Management Exits Primoris Stake
- Complete Exit: Goodlander Investment Management sold all 275,000 shares of Primoris in Q4 2025 for approximately $37.77 million, eliminating its exposure to the company and reflecting a cautious stance towards market volatility.
- Performance Review: Primoris reported revenue of about $7.6 billion for 2025, a 19% increase year-over-year, with Q4 revenue alone at $1.9 billion and adjusted EBITDA rising 22% to $531 million, indicating strong growth potential in the infrastructure sector.
- Market Performance: As of February 17, 2026, Primoris shares were priced at $162.38, up 124.2% over the past year, significantly outperforming the S&P 500's nearly 20% return, reflecting optimistic market expectations for its future growth.
- Portfolio Adjustment: While Goodlander exited Primoris, it still holds several infrastructure and industrial investments, suggesting that this move is more about portfolio rebalancing rather than a broad rejection of the infrastructure theme.
See More
Goodlander Investment Management Exits Primoris Stake
- Position Change: Goodlander Investment Management sold 275,000 shares of Primoris in Q4 2025, resulting in a $37.77 million decrease in net position value, indicating a complete exit from Primoris, which previously constituted 14.4% of the fund's AUM.
- Performance Review: Primoris reported approximately $7.6 billion in revenue for 2025, a 19% increase year-over-year, with Q4 revenue alone at $1.9 billion and adjusted EBITDA rising 22% to $531 million, showcasing the company's strong growth potential in infrastructure solutions.
- Market Reaction: Primoris shares surged over 120% in the past year, significantly outpacing the broader market and raising valuation expectations, leading investors to lock in gains at this time, reflecting a reassessment of future risks.
- Portfolio Adjustment: While Goodlander exited Primoris, it still holds several infrastructure and industrial investments, indicating that this exit appears more as a portfolio rebalancing rather than a broad rejection of the infrastructure theme.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
Primoris Services Corporation Q4 2025 Earnings Call Highlights
- Significant Performance Growth: Primoris achieved nearly $1.9 billion in revenue for Q4 2025, an increase of $116.4 million year-over-year, with full-year revenue approaching $7.6 billion, primarily driven by double-digit growth in both the Utilities and Energy segments, showcasing the company's strong market performance.
- Robust Backlog: The total backlog exceeded $11.9 billion at year-end, including nearly $3 billion in new contracts booked in the final quarter, indicating strong future growth potential and demand in the market.
- Optimistic Outlook: Management provided 2026 earnings guidance of $5.35 to $5.55 per share and adjusted EPS of $5.80 to $6, reflecting confidence in future performance, particularly in the growing sectors of renewables and natural gas generation.
- Cash Flow and Financial Health: The company reported over $470 million in operating cash flow for 2025, with a cash balance of $536 million and long-term debt of $470 million, indicating a net cash positive position that enhances its capacity for investment and expansion.
See More
Putnam PanAgora ESG ETF Sees Major Unit Outflow
- Unit Outflow Situation: The Putnam PanAgora ESG International Equity ETF experienced an outflow of 125,000 units this week, representing a 35.7% decline compared to the previous week, indicating a significant drop in investor confidence that could impact future inflows and market performance.
- Market Performance Volatility: In morning trading, ASML Holding's stock fell approximately 2.2%, while Barclays rose about 0.4%, reflecting varied market reactions to different stocks, which may affect the overall performance of the ETF and the stability of its portfolio.
- Investor Sentiment Shift: The significant outflow may lead investors to question the effectiveness of ESG investment strategies, prompting fund management to reassess their investment approaches to restore investor confidence.
- Industry Impact Assessment: This outflow could have a ripple effect across the ESG investment sector, prompting other fund managers to focus on liquidity management and investor relations to address challenges posed by market fluctuations.
See More
Primoris Q4 Earnings Beat Expectations Despite Stock Decline
- Significant Revenue Growth: Primoris reported Q4 revenues of $1.86 billion, reflecting a 6.7% year-over-year increase that exceeded analyst expectations by 3.3%, showcasing the company's robust performance in utility and energy infrastructure despite economic uncertainties.
- Improved Profitability: The company also surpassed expectations in adjusted operating income, indicating successful cost control and operational efficiency, although its stock has declined by 13.7% since the earnings report, currently trading at $142.88.
- Strong Industry Performance: The 12 tracked construction and maintenance services companies collectively beat analyst consensus revenue estimates by 4.7%, demonstrating resilience in the sector amidst rising interest rates, with an average stock decline of 9.6%.
- Optimistic Future Outlook: CEO Koti Vadlamudi emphasized the company's progress in achieving multi-year goals and enhancing capital allocation capabilities, suggesting potential growth opportunities ahead, despite the current bearish market sentiment.
See More
Goodlander Investment Management Exits Primoris Stake
- Complete Exit: Goodlander Investment Management sold all 275,000 shares of Primoris in Q4 2025 for approximately $37.77 million, eliminating its exposure to the company and reflecting a cautious stance towards market volatility.
- Performance Review: Primoris reported revenue of about $7.6 billion for 2025, a 19% increase year-over-year, with Q4 revenue alone at $1.9 billion and adjusted EBITDA rising 22% to $531 million, indicating strong growth potential in the infrastructure sector.
- Market Performance: As of February 17, 2026, Primoris shares were priced at $162.38, up 124.2% over the past year, significantly outperforming the S&P 500's nearly 20% return, reflecting optimistic market expectations for its future growth.
- Portfolio Adjustment: While Goodlander exited Primoris, it still holds several infrastructure and industrial investments, suggesting that this move is more about portfolio rebalancing rather than a broad rejection of the infrastructure theme.
See More
Goodlander Investment Management Exits Primoris Stake
- Position Change: Goodlander Investment Management sold 275,000 shares of Primoris in Q4 2025, resulting in a $37.77 million decrease in net position value, indicating a complete exit from Primoris, which previously constituted 14.4% of the fund's AUM.
- Performance Review: Primoris reported approximately $7.6 billion in revenue for 2025, a 19% increase year-over-year, with Q4 revenue alone at $1.9 billion and adjusted EBITDA rising 22% to $531 million, showcasing the company's strong growth potential in infrastructure solutions.
- Market Reaction: Primoris shares surged over 120% in the past year, significantly outpacing the broader market and raising valuation expectations, leading investors to lock in gains at this time, reflecting a reassessment of future risks.
- Portfolio Adjustment: While Goodlander exited Primoris, it still holds several infrastructure and industrial investments, indicating that this exit appears more as a portfolio rebalancing rather than a broad rejection of the infrastructure theme.
See More
The Small-Cap Comeback Could Be Beginning: Here Are Some Funds and Stocks to Consider.
- Small-company stocks gaining attention: Investors are increasingly focusing on small-company stocks as interest in artificial intelligence wanes.
- Market dynamics shifting: The shift in investor sentiment indicates a broader change in market dynamics, moving away from tech-heavy investments.
- Potential for growth: Small-company stocks are seen as having significant growth potential, attracting more capital as investors seek new opportunities.
- Economic implications: This trend may reflect changing economic conditions and investor strategies in response to market fluctuations.
See More
Primoris Services Corporation Q4 2025 Earnings Call Highlights
- Significant Performance Growth: Primoris achieved nearly $1.9 billion in revenue for Q4 2025, an increase of $116.4 million year-over-year, with full-year revenue approaching $7.6 billion, primarily driven by double-digit growth in both the Utilities and Energy segments, showcasing the company's strong market performance.
- Robust Backlog: The total backlog exceeded $11.9 billion at year-end, including nearly $3 billion in new contracts booked in the final quarter, indicating strong future growth potential and demand in the market.
- Optimistic Outlook: Management provided 2026 earnings guidance of $5.35 to $5.55 per share and adjusted EPS of $5.80 to $6, reflecting confidence in future performance, particularly in the growing sectors of renewables and natural gas generation.
- Cash Flow and Financial Health: The company reported over $470 million in operating cash flow for 2025, with a cash balance of $536 million and long-term debt of $470 million, indicating a net cash positive position that enhances its capacity for investment and expansion.
See More
