In the latest trading session, Quanta Services (PWR) closed at $377.56, marking a -2.14% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.07%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.03%.
Shares of the specialty contractor for utility and energy companies witnessed a gain of 8.47% over the previous month, beating the performance of the Construction sector with its gain of 3.52%, and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of Quanta Services in its upcoming release. The company is predicted to post an EPS of $2.43, indicating a 27.89% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $6.55 billion, up 17.11% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.32 per share and revenue of $27.06 billion, which would represent changes of +15.05% and +14.3%, respectively, from the prior 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 remained stagnant. Quanta Services presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Quanta Services is at present trading with a Forward P/E ratio of 37.37. This signifies a premium in comparison to the average Forward P/E of 20.44 for its industry.
It is also worth noting that PWR currently has a PEG ratio of 2.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Engineering - R and D Services industry stood at 1.81 at the close of the market yesterday.
The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 16% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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