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Quanta Services (PWR) Laps the Stock Market: Here's Why

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In the latest trading session, Quanta Services (PWR - Free Report) closed at $414.42, marking a +1.3% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.31%.

The stock of specialty contractor for utility and energy companies has risen by 8.24% in the past month, leading the Construction sector's loss of 0.35% and the S&P 500's gain of 3.15%.

Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.24, indicating a 19.12% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.41 billion, up 14.06% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.56 per share and revenue of $27.79 billion, indicating changes of +17.73% and +17.38%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Quanta Services. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. Right now, Quanta Services possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Quanta Services has a Forward P/E ratio of 38.74 right now. Its industry sports an average Forward P/E of 21.78, so one might conclude that Quanta Services is trading at a premium comparatively.

We can additionally observe that PWR currently boasts a PEG ratio of 2.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.83.

The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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