Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Quanta Services (PWR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Quanta Services is one of 89 companies in the Construction group. The Construction group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Quanta Services is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PWR's full-year earnings has moved 12.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that PWR has returned about 77.9% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 13.9% on a year-to-date basis. This means that Quanta Services is outperforming the sector as a whole this year.
Tutor Perini (TPC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.3%.
The consensus estimate for Tutor Perini's current year EPS has increased 8.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Quanta Services belongs to the Engineering - R and D Services industry, a group that includes 22 individual companies and currently sits at #99 in the Zacks Industry Rank. On average, this group has gained an average of 32.1% so far this year, meaning that PWR is performing better in terms of year-to-date returns.
In contrast, Tutor Perini falls under the Building Products - Heavy Construction industry. Currently, this industry has 8 stocks and is ranked #47. Since the beginning of the year, the industry has moved +46.8%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Quanta Services and Tutor Perini as they could maintain their solid performance.
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Quanta Services, Inc. (PWR): Free Stock Analysis Report
Tutor Perini Corporation (TPC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).