Trade-Ideas LLC identified

Quanta Services

(

PWR

) as a weak 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 $38.3 million.
  • PWR has traded 463,954 shares today.
  • PWR is trading at 11.10 times the normal volume for the stock at this time of day.
  • PWR is trading at a new low 7.00% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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:

TheStreet Recommends

Quanta Services, Inc. provides specialty contracting services to the electric power, and oil and gas industries in North America and internationally. The company operates through two segments, Electric Power Infrastructure Services and Oil and Gas Infrastructure Services. PWR has a PE ratio of 48. Currently there are 7 analysts that rate Quanta Services a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Quanta Services has been 2.3 million shares per day over the past 30 days. Quanta Services has a market cap of $3.7 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.84 and a short float of 4% with 3.80 days to cover. Shares are up 26.4% year-to-date as of the close of trading on Friday.

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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 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 deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • PWR's debt-to-equity ratio is very low at 0.13 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 1.33, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $199.74 million or 5.55% when compared to the same quarter last year. Despite an increase in cash flow of 5.55%, QUANTA SERVICES INC is still growing at a significantly lower rate than the industry average of 1774.18%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.4%. Since the same quarter one year prior, revenues slightly dropped by 7.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Construction & Engineering industry and the overall market, QUANTA SERVICES INC's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for QUANTA SERVICES INC is currently extremely low, coming in at 14.27%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.19% trails that of the industry average.

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