Is Quanta Services (PWR) Outperforming Other Construction Stocks This Year?

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Quanta Services (PWR) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Quanta Services is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Quanta Services is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for PWR's full-year earnings has moved 1.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, PWR has moved about 19.6% on a year-to-date basis. Meanwhile, stocks in the Construction group have lost about 0.6% on average. This means that Quanta Services is outperforming the sector as a whole this year.

One other Construction stock that has outperformed the sector so far this year is Southland Holdings (SLND). The stock is up 28.6% year-to-date.

For Southland Holdings, the consensus EPS estimate for the current year has increased 32.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Quanta Services is a member of the Engineering - R and D Services industry, which includes 17 individual companies and currently sits at #97 in the Zacks Industry Rank. On average, stocks in this group have gained 8.2% this year, meaning that PWR is performing better in terms of year-to-date returns.

Southland Holdings, however, belongs to the Building Products - Miscellaneous industry. Currently, this 29-stock industry is ranked #68. The industry has moved -7.5% so far this year.

Going forward, investors interested in Construction stocks should continue to pay close attention to Quanta Services and Southland Holdings as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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