Quanta Services (PWR) closed the most recent trading day at $473.24, moving +2.1% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.16%. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Coming into today, shares of the specialty contractor for utility and energy companies had gained 6.5% in the past month. In that same time, the Construction sector gained 5.32%, while the S&P 500 lost 0.42%.
Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. On that day, Quanta Services is projected to report earnings of $3 per share, which would represent year-over-year growth of 2.04%. 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.
Any recent changes to analyst estimates for Quanta Services should also be noted by investors. 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% increase. Quanta Services is currently a Zacks Rank #2 (Buy).
In terms of valuation, Quanta Services is currently trading at a Forward P/E ratio of 37.34. This signifies a premium in comparison to the average Forward P/E of 24.33 for its industry.
We can also see that PWR currently has a PEG ratio of 2.06. 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 of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.95.
The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 37, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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