Back to top

Image: Bigstock

Is Quanta Services (PWR) Stock Outpacing Its Construction Peers This Year?

Read MoreHide Full Article

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Quanta Services (PWR - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Quanta Services is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Quanta Services is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for PWR's full-year earnings has moved 0.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, PWR has returned 25.6% so far this year. Meanwhile, stocks in the Construction group have gained about 19% on average. This shows that Quanta Services is outperforming its peers so far this year.

Another stock in the Construction sector, Great Lakes Dredge & Dock (GLDD - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 28.1%.

In Great Lakes Dredge & Dock's case, the consensus EPS estimate for the current year increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Quanta Services belongs to the Engineering - R and D Services industry, which includes 20 individual stocks and currently sits at #79 in the Zacks Industry Rank. Stocks in this group have gained about 32.1% so far this year, so PWR is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Great Lakes Dredge & Dock belongs to the Building Products - Heavy Construction industry. This 10-stock industry is currently ranked #12. The industry has moved +59.5% year to date.

Investors interested in the Construction sector may want to keep a close eye on Quanta Services and Great Lakes Dredge & Dock as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Quanta Services, Inc. (PWR) - free report >>

Great Lakes Dredge & Dock Corporation (GLDD) - free report >>

Published in