In the latest trading session, Quanta Services (PWR) closed at $691.40, marking a -3.98% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.66%.
The specialty contractor for utility and energy companies's stock has climbed by 1.98% in the past month, falling short of the Construction sector's gain of 5.89% and outpacing the S&P 500's loss of 1.21%.
The upcoming earnings release of Quanta Services will be of great interest to investors. On that day, Quanta Services is projected to report earnings of $3.29 per share, which would represent year-over-year growth of 32.66%. Our most recent consensus estimate is calling for quarterly revenue of $8.53 billion, up 25.87% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.03 per share and a revenue of $34.77 billion, representing changes of +30.51% and +22.07%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Quanta Services. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Quanta Services possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Quanta Services is at present trading with a Forward P/E ratio of 51.31. This indicates a premium in contrast to its industry's Forward P/E of 38.44.
Also, we should mention that PWR has a PEG ratio of 2.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 2.05.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Quanta Services, Inc. (PWR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).