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Quanta Services (PWR) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest close session, Quanta Services (PWR - Free Report) was down 1.44% at $658.56. The stock's performance was behind the S&P 500's daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
Shares of the specialty contractor for utility and energy companies have depreciated by 2.21% over the course of the past month, underperforming the Construction sector's loss of 1.68%, and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Quanta Services in its upcoming release. It is anticipated that the company will report an EPS of $3.29, marking a 32.66% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.53 billion, reflecting a 25.87% rise from the equivalent quarter last year.
PWR's full-year Zacks Consensus Estimates are calling for earnings of $14.03 per share and revenue of $34.76 billion. These results would represent year-over-year changes of +30.51% and +22.03%, respectively.
Any recent changes to analyst estimates for Quanta Services should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Quanta Services is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Quanta Services is holding a Forward P/E ratio of 47.63. For comparison, its industry has an average Forward P/E of 24.64, which means Quanta Services is trading at a premium to the group.
Also, we should mention that PWR has a PEG ratio of 2.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Engineering - R and D Services was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow PWR in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Quanta Services (PWR) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest close session, Quanta Services (PWR - Free Report) was down 1.44% at $658.56. The stock's performance was behind the S&P 500's daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
Shares of the specialty contractor for utility and energy companies have depreciated by 2.21% over the course of the past month, underperforming the Construction sector's loss of 1.68%, and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Quanta Services in its upcoming release. It is anticipated that the company will report an EPS of $3.29, marking a 32.66% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.53 billion, reflecting a 25.87% rise from the equivalent quarter last year.
PWR's full-year Zacks Consensus Estimates are calling for earnings of $14.03 per share and revenue of $34.76 billion. These results would represent year-over-year changes of +30.51% and +22.03%, respectively.
Any recent changes to analyst estimates for Quanta Services should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. Quanta Services is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Quanta Services is holding a Forward P/E ratio of 47.63. For comparison, its industry has an average Forward P/E of 24.64, which means Quanta Services is trading at a premium to the group.
Also, we should mention that PWR has a PEG ratio of 2.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Engineering - R and D Services was holding an average PEG ratio of 1.59 at yesterday's closing price.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow PWR in the coming trading sessions, be sure to utilize Zacks.com.