Quanta Services (PWR) Stock Drops Despite Market Gains: Important Facts to Note

Company Overview - Quanta Services (PWR) closed at $268.22, down 1.06% from the previous trading session, underperforming the S&P 500's gain of 0.08% [1] - The company has seen a 3.58% decline in share price over the past month, while the Construction sector and S&P 500 have lost 4.98% and 7.33%, respectively [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of$ 1.72, representing a 21.99% increase year-over-year [2] - Quarterly revenue is anticipated to be $5.89 billion, up 16.98% from the same period last year [2] Annual Estimates - For the annual period, earnings are projected at$ 10.18 per share and revenue at $26.9 billion, indicating increases of 13.49% and 13.63% year-over-year, respectively [3] - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends and analyst optimism [3] Analyst Ratings and Momentum - Estimate revisions are correlated with near-term share price momentum, and the Zacks Rank system can help investors capitalize on this [4] - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically returning an average annual gain of +25% since 1988 [5] - Quanta Services currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Quanta Services has a Forward P/E ratio of 26.64, which is a premium compared to the industry average of 17.24 [6] - The company has a PEG ratio of 2.02, while the Engineering - R and D Services industry has an average PEG ratio of 1.3 [6] Industry Context - The Engineering - R and D Services industry is part of the Construction sector and holds a Zacks Industry Rank of 40, placing it in the top 16% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]