Quanta Services (PWR) ended the recent trading session at $382.53, demonstrating a -1.82% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq gained 0.45%.
The stock of specialty contractor for utility and energy companies has risen by 3.21% in the past month, lagging the Construction sector's gain of 5.65% and the S&P 500's gain of 3.44%.
Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.24, signifying a 19.12% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 14.06% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.56 per share and a revenue of $27.81 billion, signifying shifts of +17.73% and +17.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Quanta Services. 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Quanta Services is currently a Zacks Rank #3 (Hold).
In terms of valuation, Quanta Services is currently trading at a Forward P/E ratio of 36.9. This indicates a premium in contrast to its industry's Forward P/E of 20.75.
It's also important to note that PWR currently trades at a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 1.71.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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