In the latest trading session, Quanta Services (PWR) closed at $372.26, marking a +1.78% move from the previous day. This move outpaced the S&P 500's daily gain of 1.11%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
The specialty contractor for utility and energy companies's shares have seen an increase of 9.06% over the last month, surpassing the Construction sector's gain of 2.35% and the S&P 500's gain of 3.92%.
Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.44, marking a 28.42% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.53 billion, indicating a 16.73% increase compared to the same quarter of the previous year.
PWR's full-year Zacks Consensus Estimates are calling for earnings of $10.32 per share and revenue of $27.03 billion. These results would represent year-over-year changes of +15.05% and +14.18%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Currently, Quanta Services is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Quanta Services is at present trading with a Forward P/E ratio of 35.43. This represents a premium compared to its industry average Forward P/E of 19.64.
Also, we should mention that PWR has a PEG ratio of 2.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Engineering - R and D Services industry stood at 1.72 at the close of the market yesterday.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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