This story originally appeared on Zacks
Quanta Services (PWR) closed the most recent trading day at $118.06, moving +1.25% from the previous trading session. This change outpaced the S&P 500’s 0.11% loss on the day.
Heading into today, shares of the specialty contractor for utility and energy companies had lost 1.69% over the past month, lagging the Construction sector’s gain of 4.26% and the S&P 500’s gain of 4.61% in that time.
Investors will be hoping for strength from PWR as it approaches its next earnings release. On that day, PWR is projected to report earnings of $1.47 per share, which would represent year-over-year growth of 5%. Meanwhile, our latest consensus estimate is calling for revenue of $3.43 billion, up 13.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.64 per share and revenue of $12.5 billion. These totals would mark changes of +21.47% and +11.61%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PWR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.76% higher within the past month. PWR is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, PWR is holding a Forward P/E ratio of 25.11. Its industry sports an average Forward P/E of 25.06, so we one might conclude that PWR is trading at a premium comparatively.
The Engineering – R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Quanta Services, Inc. (PWR): Free Stock Analysis Report
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