Quanta Services (PWR) closed at $427.80 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 0.71%.
Prior to today's trading, shares of the specialty contractor for utility and energy companies had gained 13.07% outpaced the Construction sector's gain of 2.79% and the S&P 500's gain of 4.26%.
Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.24, indicating a 19.12% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.41 billion, up 14.06% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.56 per share and revenue of $27.79 billion. These totals would mark changes of +17.73% and +17.38%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Quanta Services. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. Quanta Services presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, Quanta Services is holding a Forward P/E ratio of 39.88. This expresses a premium compared to the average Forward P/E of 22.8 of its industry.
We can additionally observe that PWR currently boasts a PEG ratio of 2.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Engineering – R and D Services industry currently had an average PEG ratio of 1.74 as of yesterday's close.
The Engineering – R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 40% of all 250+ industries.
