• Perimeter Solutions (PRM) shows strong technical momentum, hitting all-time highs on Sept. 3.
• Shares maintain a 100% “Buy” Barchart opinion.
• PRM stock is up 94% over the past year and nearly 79% in the year to date.
• Given PRM’s volatility and speculative nature, I recommend strict risk management and stop-loss strategies for any potential investment.

Today’s Featured Stock

Valued at $3.3 billion, Perimeter Solutions (PRM) is a manufacturer of firefighting products and lubricant additives. Its Fire Safety business includes formulation and manufacturing of fire management products along with services and pre-treatment solutions for managing wildland, military, industrial and municipal fires. The Oil Additives business produces phosphorous pentasulfide utilized in the preparation of lubricant additives. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. PRM checks those boxes. Since the Trend Seeker signaled a buy on Aug. 7, the stock gained 33.57%.

PRM Price vs. Daily Moving Averages:

Barchart Technical Indicators for Perimeter Solutions

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each 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. These technical indicators form the Barchart Opinion on a particular stock.

Perimeter Solutions hit a new all-time high of $22.60 in morning trading on Sept. 3. 

• Perimeter Solutions has a Weighted Alpha of +135.93.
• PRM has an 100% “Buy” opinion from Barchart.
• The stock gained 93.49% over the past year.
• PRM has its Trend Seeker “Buy” signal intact.
• Perimeter Solutions is trading above its 20-, 50-, and 100-day moving averages.
• The stock made 17 new highs and gained 44.50% in the last month.
• Relative Strength Index (RSI) is at 86.74%.
• There’s a technical support level around $22.03.

Don’t Forget the Fundamentals

• $3.3 billion market capitalization.
• Revenue is expected to be down by 2.95% this year but grow again by 6.70% next year.
• Earnings are also predicted to be down this year by 1.68% but increase again by 9.73% next year

Analyst and Investor Sentiment on Perimeter Solutions

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.

It looks like Wall Street analysts are split on Perimeter Solutions.

• The Wall Street analysts tracked by Barchart have issued 2 “Strong Buy” and 1 “Hold” opinion on the stock.
• Their price targets are between $20-$25.
• Value Line gives the stock an “Average” rating.
• CFRAs MarketScope Advisor rates it a “Hold.”
• Morningstar thinks the stock is 17% overvalued.
• 2,210 investors monitor the stock on Seeking Alpha, which rates the stock a “Buy.”

The Bottom Line on Perimeter Solutions

Perimeter Solutions currently has momentum and is hitting new highs. With all the wildfires around the world, it would seem its product line will be in high demand.

I caution that PRM is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart 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.