The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. 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? By taking a look at the stock’s year-to-date performance in comparison to its Construction peers, we might be able to answer that 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Quanta Services is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for PWR’s full-year earnings has moved 19.8% higher. This signals that analyst sentiment is improving and the stock’s earnings outlook is more positive.
According to our latest data, PWR has moved about 51.4% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 2.7% on a year-to-date basis. This means that Quanta Services is outperforming the sector as a whole this year.
One other Construction stock that has outperformed the sector so far this year is Tutor Perini (TPC). The stock is up 33.6% year-to-date.
The consensus estimate for Tutor Perini’s current year EPS has increased 5.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Quanta Services belongs to the Engineering – R and D Services industry, a group that includes 23 individual stocks and currently sits at #156 in the Zacks Industry Rank. This group has gained an average of 19.8% so far this year, so PWR is performing better in this area.
In contrast, Tutor Perini falls under the Building Products – Heavy Construction industry. Currently, this industry has 9 stocks and is ranked #66. Since the beginning of the year, the industry has moved +9.8%.
Investors with an interest in Construction stocks should continue to track Quanta Services and Tutor Perini. These stocks will be looking to continue their solid performance.
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Quanta Services, Inc. (PWR) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
