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Quanta Services (PWR) Outperforms Broader Market: What You Need to Know

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Quanta Services (PWR - Free Report) closed at $676.56 in the latest trading session, marking a +2.11% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 1.19%.

The stock of specialty contractor for utility and energy companies has risen by 6.86% in the past month, leading the Construction sector's loss of 2.15% and the S&P 500's gain of 0.55%.

The investment community will be closely monitoring the performance of Quanta Services in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.01, marking a 50.45% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.99 billion, up 43.95% from the year-ago period.

PWR's full-year Zacks Consensus Estimates are calling for earnings of $16.7 per share and revenue of $39.41 billion. These results would represent year-over-year changes of +55.35% and +38.37%, respectively.

Investors should also note any recent changes to analyst estimates for Quanta Services. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Currently, Quanta Services is carrying a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Quanta Services is at present trading with a Forward P/E ratio of 39.69. This valuation marks a premium compared to its industry average Forward P/E of 22.41.

It's also important to note that PWR currently trades at a PEG ratio of 1.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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