In the latest trading session, Quanta Services (PWR) closed at $422.57, marking a +2.28% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.65% for the day. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.82%.
Coming into today, shares of the specialty contractor for utility and energy companies had lost 11.51% in the past month. In that same time, the Construction sector gained 0.07%, while the S&P 500 gained 1.15%.
The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company's upcoming EPS is projected at $3, signifying a 2.04% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.31 billion, up 11.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.59 per share and revenue of $27.95 billion, which would represent changes of +18.06% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Quanta Services. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Quanta Services presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Quanta Services has a Forward P/E ratio of 33.37 right now. This indicates a premium in contrast to its industry's Forward P/E of 23.99.
We can also see that PWR currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.7.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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