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Quanta Services (PWR) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest trading session, Quanta Services (PWR - Free Report) closed at $299.09, marking a +1.03% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%.

Heading into today, shares of the specialty contractor for utility and energy companies had gained 14.93% over the past month, outpacing the Construction sector's gain of 4.37% and the S&P 500's gain of 1.21% in that time.

Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.70, marking a 20.54% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.56 billion, up 16.67% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.59 per share and revenue of $23.84 billion, indicating changes of +19.97% and +14.15%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Quanta Services. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.26% higher. Right now, Quanta Services possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Quanta Services currently has a Forward P/E ratio of 34.45. This indicates a premium in contrast to its industry's Forward P/E of 20.69.

The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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