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Quanta Services (PWR) Outpaces Stock Market Gains: What You Should Know

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Quanta Services (PWR - Free Report) closed at $427.80 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.71%.

Prior to today's trading, shares of the specialty contractor for utility and energy companies had gained 13.07% outpaced the Construction sector's gain of 2.79% and the S&P 500's gain of 4.26%.

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. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 14.06% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.56 per share and revenue of $27.79 billion. These totals would mark changes of +17.73% and +17.38%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Quanta Services. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 has moved 0.11% higher. Quanta Services presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Quanta Services is holding a Forward P/E ratio of 39.88. This expresses a premium compared to the average Forward P/E of 22.8 of its industry.

We can additionally observe that PWR currently boasts a PEG ratio of 2.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Engineering - R and D Services industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 40% 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.

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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