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Quanta Services (PWR) Advances But Underperforms Market: Key Facts

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Quanta Services (PWR - Free Report) closed the latest trading day at $308.67, indicating a +0.38% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.

The the stock of specialty contractor for utility and energy companies has risen by 22.97% in the past month, leading the Construction sector's gain of 8.21% and the S&P 500's gain of 5.41%.

The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company is predicted to post an EPS of $2.70, indicating a 20.54% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.56 billion, indicating a 16.67% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.59 per share and revenue of $23.84 billion, which would represent changes of +19.97% and +14.15%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Quanta Services. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Quanta Services holds a Zacks Rank of #2 (Buy).

Looking at valuation, Quanta Services is presently trading at a Forward P/E ratio of 35.78. This indicates a premium in contrast to its industry's Forward P/E of 21.16.

The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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