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Quanta Services (PWR) Stock Sinks As Market Gains: What You Should Know

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The latest trading session saw Quanta Services (PWR - Free Report) ending at $296.36, denoting a -0.53% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.

The the stock of specialty contractor for utility and energy companies has risen by 11.38% in the past month, leading the Construction sector's gain of 2.56% and the S&P 500's gain of 1.71%.

Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.70, reflecting a 20.54% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.56 billion, up 16.67% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.59 per share and a revenue of $23.84 billion, representing changes of +19.97% and +14.15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Quanta Services. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.26% rise in the Zacks Consensus EPS estimate. Quanta Services currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Quanta Services is presently trading at a Forward P/E ratio of 34.67. This expresses a premium compared to the average Forward P/E of 21.63 of its industry.

The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 38% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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