Is Quanta Services (PWR) Stock Outpacing Its Construction Peers This Year?
Here is how Quanta Services (PWR) and Tutor Perini (TPC) have performed compared to their sector so far this year.
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Quanta Services (PWR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Quanta Services is a member of our Construction group, which includes 92 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Quanta Services is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for PWR's full-year earnings has moved 19.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PWR has returned 51.5% so far this year. In comparison, Construction companies have returned an average of 7%. As we can see, Quanta Services is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Tutor Perini (TPC). The stock is up 36.2% year-to-date.
In Tutor Perini's case, the consensus EPS estimate for the current year increased 5.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Quanta Services belongs to the Engineering - R and D Services industry, which includes 23 individual stocks and currently sits at #170 in the Zacks Industry Rank. This group has gained an average of 23.3% so far this year, so PWR is performing better in this area.
Tutor Perini, however, belongs to the Building Products - Heavy Construction industry. Currently, this 9-stock industry is ranked #67. The industry has moved +16.7% so far this year.
Investors interested in the Construction sector may want to keep a close eye on Quanta Services and Tutor Perini as they attempt to continue their solid performance.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>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
Quanta Services, Inc. (PWR): Free Stock Analysis Report
Tutor Perini Corporation (TPC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).