Are Construction Stocks Lagging Quanta Services (PWR) This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Quanta Services (PWR) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Quanta Services is one of 97 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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 #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PWR's full-year earnings has moved 0.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, PWR has gained about 24.7% so far this year. In comparison, Construction companies have returned an average of 24.3%. As we can see, Quanta Services is performing better than its sector in the calendar year.
Another stock in the Construction sector, Construction Partners (ROAD), has outperformed the sector so far this year. The stock's year-to-date return is 49.5%.
For Construction Partners, the consensus EPS estimate for the current year has increased 34.6% 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, a group that includes 21 individual stocks and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 17.8% so far this year, so PWR is performing better this group in terms of year-to-date returns.
On the other hand, Construction Partners belongs to the Building Products - Miscellaneous industry. This 27-stock industry is currently ranked #34. The industry has moved +28.3% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Quanta Services and Construction Partners as they could maintain their solid performance.
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