Quanta Services (PWR – Free Report) closed the most recent trading day at $268.22, moving -1.06% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.
Coming into today, shares of the specialty contractor for utility and energy companies had lost 3.58% in the past month. In that same time, the Construction sector lost 4.98%, while the S&P 500 lost 7.33%.
The upcoming earnings release of Quanta Services will be of great interest to investors. It is anticipated that the company will report an EPS of $1.72, marking a 21.99% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.89 billion, up 16.98% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.18 per share and a revenue of $26.9 billion, signifying shifts of +13.49% and +13.63%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% upward. Currently, Quanta Services is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Quanta Services is currently trading at a Forward P/E ratio of 26.64. This signifies a premium in comparison to the average Forward P/E of 17.24 for its industry.
It’s also important to note that PWR currently trades at a PEG ratio of 2.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As the market closed yesterday, the Engineering – R and D Services industry was having an average PEG ratio of 1.3.
The Engineering – R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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