Quanta Services (PWR) Rises As Market Takes a Dip: Key Facts

In the latest close session, Quanta Services (PWR) was up +2.34% at $639.05. The stock outperformed the S&P 500, which registered a daily loss of 0.58%. Elsewhere, the Dow lost 1.18%, while the tech-heavy Nasdaq lost 0.32%.

The stock of specialty contractor for utility and energy companies has fallen by 5.52% in the past month, leading the Construction sector's loss of 7.66% and undershooting the S&P 500's loss of 0.36%.

Market participants will be closely following the financial results of Quanta Services in its upcoming release. The company's upcoming EPS is projected at $4.87, signifying a 46.25% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.97 billion, up 43.75% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.37 per share and revenue of $39.4 billion, indicating changes of +52.28% and +38.36%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Quanta Services should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Quanta Services is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Quanta Services is presently trading at a Forward P/E ratio of 38.14. This indicates a premium in contrast to its industry's Forward P/E of 24.02.

One should further note that PWR currently holds a PEG ratio of 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Engineering - R and D Services industry currently had an average PEG ratio of 1.59 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 102, putting it in the top 42% of all 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.

To follow PWR in the coming trading sessions, be sure to utilize Zacks.com.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research