20 Undervalued Momentum Stocks That Are Taking Off

12. Perimeter Solutions Inc. (NYSE:PRM)

3-Month Price Change: 53.0%

Forward PE: 14.1

Number of Hedge Fund Holders: 37

Perimeter Solutions Inc. (NYSE:PRM) is one of the 20 undervalued momentum stocks that are taking off. In a recent note, Morgan Stanley analyst Daniel Kutz reiterated his Buy rating on Perimeter Solutions (PRM), with a price target of $17. His positive stance on the stock is grounded in both the strength of the company’s core business and its disciplined M&A strategy.

A key focus is Perimeter’s U.S. Retardants segment, which Kutz expects to draw increased investor interest as wildfire season approaches. Unlike many cyclical businesses, this unit is relatively less affected by broader economic fluctuations, offering a degree of earnings stability even if macro conditions soften. This makes the business particularly valuable in a more uncertain economic environment.

Kutz also highlights that Perimeter has been targeting assets with recurring revenues, strong cash flow generation, and long-term growth potential, which are key qualities that support sustainable performance. The analyst also cited the recent bolt-on acquisition in the Printed Circuit Board product line, which he believed reinforces confidence in the company’s ability to build value through mergers and acquisitions.

With solid cash reserves, Perimeter appears well-equipped to continue adding to its portfolio in a strategic and accretive way. According to Kutz, all the factors outlined above combine to support his bullish view on the stock.

Perimeter Solutions Inc. (NYSE:PRM) provides solutions for the Fire Safety and Specialty Products industries.