Has Quanta Services (PWR) Outpaced Other Construction Stocks This Year?
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 one of 98 individual stocks in the Construction sector. Collectively, these companies sit at #13 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 #2 (Buy).
The Zacks Consensus Estimate for PWR's full-year earnings has moved 2.6% higher within the past quarter. 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 14.3% so far this year. In comparison, Construction companies have returned an average of 9.7%. This means that Quanta Services is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Toll Brothers (TOL). The stock is up 18.6% year-to-date.
For Toll Brothers, the consensus EPS estimate for the current year has increased 19.8% 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 21 individual stocks and currently sits at #46 in the Zacks Industry Rank. On average, this group has gained an average of 10.7% so far this year, meaning that PWR is performing better in terms of year-to-date returns.
Toll Brothers, however, belongs to the Building Products - Home Builders industry. Currently, this 19-stock industry is ranked #60. The industry has moved +9.6% so far this year.
Investors interested in the Construction sector may want to keep a close eye on Quanta Services and Toll Brothers as they attempt to continue their solid performance.
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