Trade-Ideas LLC identified

Quanta Services

(

PWR

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Quanta Services as such a stock due to the following factors:

  • PWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.8 million.
  • PWR has traded 540,336 shares today.
  • PWR is trading at 2.57 times the normal volume for the stock at this time of day.
  • PWR is trading at a new high 5.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on PWR:

Quanta Services, Inc. provides specialty contracting services to the electric power, and oil and gas industries in North America and internationally. PWR has a PE ratio of 17. Currently there are 8 analysts that rate Quanta Services a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Quanta Services has been 4.0 million shares per day over the past 30 days. Quanta Services has a market cap of $4.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.66 and a short float of 14.4% with 6.90 days to cover. Shares are down 29.7% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quanta Services as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 12.9%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • PWR's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 258.88% to $117.56 million when compared to the same quarter last year. Despite an increase in cash flow of 258.88%, QUANTA SERVICES INC is still growing at a significantly lower rate than the industry average of 1293.68%.
  • QUANTA SERVICES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, QUANTA SERVICES INC reported lower earnings of $1.28 versus $1.87 in the prior year. For the next year, the market is expecting a contraction of 14.1% in earnings ($1.10 versus $1.28).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has significantly decreased by 43.1% when compared to the same quarter one year ago, falling from $81.08 million to $46.11 million.

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