Quanta Services (PWR) ended the recent trading session at $382.53, demonstrating a -1.82% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq gained 0.45%.
The stock of specialty contractor for utility and energy companies has risen by 3.21% in the past month, lagging the Construction sector's gain of 5.65% and the S&P 500's gain of 3.44%.
Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.24, signifying a 19.12% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 14.06% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.56 per share and a revenue of $27.81 billion, signifying shifts of +17.73% and +17.46%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Quanta Services. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. Quanta Services is currently a Zacks Rank #3 (Hold).
In terms of valuation, Quanta Services is currently trading at a Forward P/E ratio of 36.9. This indicates a premium in contrast to its industry's Forward P/E of 20.75.
It's also important to note that PWR currently trades at a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Engineering – R and D Services industry was having an average PEG ratio of 1.71.
The Engineering – R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
