A strong stock as of late has been Quanta Services (PWR). Shares have been marching higher, with the stock up 8.8% over the past month. The stock hit a new 52-week high of $447.17 in the previous session. Quanta Services has gained 39.5% since the start of the year compared to the 6.6% move for the Zacks Construction sector and the 8.3% return for the Zacks Engineering - R and D Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2025, Quanta Services reported EPS of $2.48 versus consensus estimate of $2.43.
For the current fiscal year, Quanta Services is expected to post earnings of $10.58 per share on $27.8 in revenues. This represents a 17.95% change in EPS on a 17.45% change in revenues. For the next fiscal year, the company is expected to earn $12.32 per share on $30.58 in revenues. This represents a year-over-year change of 16.47% and 9.98%, respectively.
Valuation Metrics
While Quanta Services has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quanta Services has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 41.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 33X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 2.41. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Quanta Services currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quanta Services passes the test. Thus, it seems as though Quanta Services shares could have a bit more room to run in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
