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Quanta Services (PWR) Stock Moves -0.23%: What You Should Know

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In the latest market close, Quanta Services (PWR - Free Report) reached $254.29, with a -0.23% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 1.97%. Elsewhere, the Dow lost 1.69%, while the tech-heavy Nasdaq lost 2.7%.

The specialty contractor for utility and energy companies's stock has dropped by 1.69% in the past month, exceeding the Construction sector's loss of 2.14% and the S&P 500's loss of 2.79%.

The upcoming earnings release of Quanta Services will be of great interest to investors. In that report, analysts expect Quanta Services to post earnings of $1.72 per share. This would mark year-over-year growth of 21.99%. Meanwhile, our latest consensus estimate is calling for revenue of $5.89 billion, up 16.98% from the prior-year quarter.

PWR's full-year Zacks Consensus Estimates are calling for earnings of $10.18 per share and revenue of $26.9 billion. These results would represent year-over-year changes of +13.49% and +13.63%, respectively.

It is also important to note the recent changes to analyst estimates for Quanta Services. Such recent modifications usually signify the changing landscape of near-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. 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, 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 0.05% higher within the past month. 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 25.05. For comparison, its industry has an average Forward P/E of 15.99, which means Quanta Services is trading at a premium to the group.

Also, we should mention that PWR has a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Engineering - R and D Services industry had an average PEG ratio of 1.27 as trading concluded yesterday.

The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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