Quanta Services (PWR) closed the most recent trading day at $422.06, moving -1.57% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
The stock of specialty contractor for utility and energy companies has fallen by 5.7% in the past month, lagging the Construction sector's loss of 2.42% and the S&P 500's gain of 0.79%.
Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3, showcasing a 2.04% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.31 billion, indicating a 11.57% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.59 per share and a revenue of $27.95 billion, indicating changes of +18.06% and +18.07%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. Quanta Services is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Quanta Services is currently trading at a Forward P/E ratio of 40.5. This indicates a premium in contrast to its industry's Forward P/E of 22.58.
We can also see that PWR currently has a PEG ratio of 2.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 1.74.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons 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.
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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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