Quanta Services (PWR) ended the recent trading session at $413.17, demonstrating a -5.43% change from the preceding day's closing price. This change lagged the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
The specialty contractor for utility and energy companies's stock has dropped by 5.48% in the past month, falling short of the Construction sector's loss of 1.55% and the S&P 500's gain of 0.86%.
The investment community will be closely monitoring the performance of Quanta Services in its forthcoming earnings report. The company is expected to report EPS of $3, up 2.04% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.31 billion, indicating a 11.57% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.59 per share and revenue of $27.95 billion. These totals would mark changes of +18.06% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Quanta Services holds a Zacks Rank of #3 (Hold).
In terms of valuation, Quanta Services is presently being traded at a Forward P/E ratio of 35.29. This valuation marks a premium compared to its industry average Forward P/E of 22.82.
We can additionally observe that PWR currently boasts a PEG ratio of 1.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Engineering - R and D Services industry had an average PEG ratio of 1.74 as trading concluded yesterday.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 111, finds itself in the top 46% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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