Are Construction Stocks Lagging Quanta Services (PWR) This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Quanta Services (PWR) one of those stocks right now? 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 one of 91 companies in the Construction group. The Construction group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 three months, the Zacks Consensus Estimate for PWR's full-year earnings has moved 0.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that PWR has returned about 15.2% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 9.2% on average. This means that Quanta Services is performing better than its sector in terms of year-to-date returns.
Another stock in the Construction sector, Sterling Infrastructure (STRL), has outperformed the sector so far this year. The stock's year-to-date return is 18.2%.
Over the past three months, Sterling Infrastructure's consensus EPS estimate for the current year has increased 4.8%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Quanta Services is a member of the Engineering - R and D Services industry, which includes 20 individual companies and currently sits at #36 in the Zacks Industry Rank. Stocks in this group have gained about 21.4% so far this year, so PWR is slightly underperforming its industry this group in terms of year-to-date returns. Sterling Infrastructure is also part of the same industry.
Investors interested in the Construction sector may want to keep a close eye on Quanta Services and Sterling Infrastructure as they attempt to continue their solid performance.
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