In the latest trading session, Quanta Services (PWR) closed at $479.27, marking a +1.81% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, added 0.91%.
The specialty contractor for utility and energy companies's shares have seen an increase of 9.22% over the last month, surpassing the Construction sector's gain of 4.76% and the S&P 500's gain of 0.38%.
Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company is predicted to post an EPS of $3, indicating a 2.04% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.31 billion, up 11.57% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.59 per share and revenue of $27.97 billion, indicating changes of +18.06% and 0%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Quanta Services. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.45% higher. At present, Quanta Services boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Quanta Services is currently exchanging hands at a Forward P/E ratio of 37.89. For comparison, its industry has an average Forward P/E of 24.78, which means Quanta Services is trading at a premium to the group.
It is also worth noting that PWR currently has a PEG ratio of 2.09. 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. The Engineering - R and D Services industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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