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Should Value Investors Buy Quanta Services (PWR) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Quanta Services (PWR - Free Report) . PWR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.16, which compares to its industry's average of 13.23. PWR's Forward P/E has been as high as 20.27 and as low as 9.95, with a median of 12.42, all within the past year.
Another notable valuation metric for PWR is its P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.81. Over the past year, PWR's P/B has been as high as 1.62 and as low as 1.26, with a median of 1.44.
Finally, our model also underscores that PWR has a P/CF ratio of 9. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PWR's current P/CF looks attractive when compared to its industry's average P/CF of 12.57. Over the past 52 weeks, PWR's P/CF has been as high as 12.54 and as low as 8.79, with a median of 10.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quanta Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PWR feels like a great value stock at the moment.
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Should Value Investors Buy Quanta Services (PWR) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Quanta Services (PWR - Free Report) . PWR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.16, which compares to its industry's average of 13.23. PWR's Forward P/E has been as high as 20.27 and as low as 9.95, with a median of 12.42, all within the past year.
Another notable valuation metric for PWR is its P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.81. Over the past year, PWR's P/B has been as high as 1.62 and as low as 1.26, with a median of 1.44.
Finally, our model also underscores that PWR has a P/CF ratio of 9. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PWR's current P/CF looks attractive when compared to its industry's average P/CF of 12.57. Over the past 52 weeks, PWR's P/CF has been as high as 12.54 and as low as 8.79, with a median of 10.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Quanta Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PWR feels like a great value stock at the moment.