The Construction group has plenty of great stocks, but investors should always be looking for companies 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 89 companies in the Construction group. The Construction group currently sits at #16 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. 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 17.7% 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 37.1% so far this year. Meanwhile, the Construction sector has returned an average of -4.6% on a year-to-date basis. This means that Quanta Services is outperforming the sector as a whole this year.
Another stock in the Construction sector, United Rentals (URI), has outperformed the sector so far this year. The stock’s year-to-date return is 43.6%.
The consensus estimate for United Rentals’ current year EPS has increased 5.1% 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 22 individual stocks and currently sits at #151 in the Zacks Industry Rank. On average, this group has lost an average of 3.8% so far this year, meaning that PWR is performing better in terms of year-to-date returns.
On the other hand, United Rentals belongs to the Building Products – Miscellaneous industry. This 34-stock industry is currently ranked #214. The industry has moved -6.8% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Quanta Services and United Rentals as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
