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Quanta Services (PWR) Gains As Market Dips: What You Should Know

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Quanta Services (PWR - Free Report) closed at $114.66 in the latest trading session, marking a +1.62% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the specialty contractor for utility and energy companies had lost 0.67% over the past month, lagging the Construction sector's gain of 6.68% and the S&P 500's gain of 4.82% in that time.

Wall Street will be looking for positivity from Quanta Services as it approaches its next earnings report date. On that day, Quanta Services is projected to report earnings of $1.41 per share, which would represent year-over-year growth of 15.57%. Meanwhile, our latest consensus estimate is calling for revenue of $3.68 billion, up 26.53% from the prior-year quarter.

PWR's full-year Zacks Consensus Estimates are calling for earnings of $4.79 per share and revenue of $12.74 billion. These results would represent year-over-year changes of +25.39% and +13.74%, respectively.

It is also important to note the recent changes to analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Quanta Services is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Quanta Services currently has a Forward P/E ratio of 23.54. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 23.54.

The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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