Quanta Services (PWR) Declines More Than Market: Some Information for Investors

In the latest trading session, Quanta Services (PWR) closed at $622.02, marking a -4.39% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 0.56%.

The stock of specialty contractor for utility and energy companies has fallen by 5.13% in the past month, leading the Construction sector's loss of 8.85% and undershooting the S&P 500's loss of 0.82%.

Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.85, signifying a 45.65% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.95 billion, up 43.49% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.4 per share and a revenue of $39.41 billion, indicating changes of +52.56% and +38.38%, respectively, from the former 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Quanta Services is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Quanta Services has a Forward P/E ratio of 39.66 right now. This indicates a premium in contrast to its industry's Forward P/E of 23.66.

Also, we should mention that PWR has a PEG ratio of 1.99. 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 average PEG ratio for the Engineering - R and D Services industry stood at 1.51 at the close of the market yesterday.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Quanta Services, Inc. (PWR): Free Stock Analysis Report

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

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