In the latest trading session, Quanta Services (PWR) closed at $595.84, marking a +1.79% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 1.23%.
The stock of specialty contractor for utility and energy companies has risen by 4.71% in the past month, leading the Construction sector's gain of 2.73% and the S&P 500's gain of 0.63%.
The upcoming earnings release of Quanta Services will be of great interest to investors. In that report, analysts expect Quanta Services to post earnings of $2.15 per share. This would mark year-over-year growth of 20.79%. Meanwhile, the latest consensus estimate predicts the revenue to be $7.11 billion, indicating a 14.08% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.94 per share and revenue of $33.3 billion, which would represent changes of +20.37% and +16.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Quanta Services. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Quanta Services boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Quanta Services is presently trading at a Forward P/E ratio of 45.22. This indicates a premium in contrast to its industry's Forward P/E of 27.46.
It is also worth noting that PWR currently has a PEG ratio of 2.45. 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 had an average PEG ratio of 2 as trading concluded yesterday.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Quanta Services, Inc. (PWR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).