In the latest close session, Quanta Services (PWR) was up +1.44% at $379.47. This change outpaced the S&P 500's 0.8% gain on the day. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.97%.
Prior to today's trading, shares of the specialty contractor for utility and energy companies had gained 9.92% outpaced the Construction sector's gain of 2.22% and the S&P 500's gain of 5.12%.
The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 28.42% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $6.53 billion, showing a 16.73% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.32 per share and revenue of $27.03 billion, which would represent changes of +15.05% and +14.18%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Quanta Services. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, Quanta Services holds a Zacks Rank of #3 (Hold).
Digging into valuation, Quanta Services currently has a Forward P/E ratio of 36.24. For comparison, its industry has an average Forward P/E of 20.14, which means Quanta Services is trading at a premium to the group.
Meanwhile, PWR's PEG ratio is currently 2.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.72.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 58, placing it within the top 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PWR in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
