Quanta Services Inc. (PWR): Today's Featured Materials & Construction Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Quanta Services ( PWR) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Quanta Services fell 35 cents (-1.4%) to $25.50 on average volume. Throughout the day, 2.2 million shares of Quanta Services exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $25.49-$26 after having opened the day at $25.65 as compared to the previous trading day's close of $25.85. Other companies within the Materials & Construction industry that declined today were: Guanwei Recycling ( GPRC), down 13.3%, Sterling Construction Company ( STRL), down 10.2%, MagneGas Corporation ( MNGA), down 8.4%, and China Advanced Construction Materials Group ( CADC), down 8.3%.
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Quanta Services, Inc. provides specialty contracting services primarily in North America. Quanta Services has a market cap of $5.76 billion and is part of the industrial goods sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 21.1% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Quanta Services a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Quanta Services as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Gafisa ( GFA), up 8.3%, Headwaters ( HW), up 7.9%, Apogee ( APOG), up 4.3%, and Real Goods Solar ( RSOL), up 3.4%, were all gainers within the materials & construction industry with Masco Corporation ( MAS) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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