Quanta Services (PWR) closed the most recent trading day at $403.31, moving +1.36% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.05%.
Prior to today's trading, shares of the specialty contractor for utility and energy companies had gained 10.4% outpaced the Construction sector's gain of 8.6% and the S&P 500's gain of 5.37%.
The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company is slated to reveal its earnings on July 31, 2025. In that report, analysts expect Quanta Services to post earnings of $2.43 per share. This would mark year-over-year growth of 27.89%. Simultaneously, our latest consensus estimate expects the revenue to be $6.55 billion, showing a 17.16% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.33 per share and revenue of $27.04 billion, which would represent changes of +15.16% and +14.23%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. At present, Quanta Services boasts a Zacks Rank of #3 (Hold).
Investors should also note Quanta Services's current valuation metrics, including its Forward P/E ratio of 38.52. Its industry sports an average Forward P/E of 21.06, so one might conclude that Quanta Services is trading at a premium comparatively.
Also, we should mention that PWR has a PEG ratio of 2.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PWR's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 38% 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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Quanta Services, Inc. (PWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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