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

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 higher today making it today's featured materials & construction winner. The industry as a whole was unchanged today. By the end of trading, Quanta Services rose 36 cents (1.3%) to $28.40 on average volume. Throughout the day, 2.5 million shares of Quanta Services exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in a price between $27.87-$28.54 after having opened the day at $28.10 as compared to the previous trading day's close of $28.04. Other companies within the Materials & Construction industry that increased today were: Xinyuan Real Estate ( XIN), up 9%, Pure Cycle Corporation ( PCYO), up 8.7%, Goldfield ( GV), up 6.5%, and PGT ( PGTI), up 6.3%.
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Quanta Services, Inc. provides specialty contracting services primarily in North America. Quanta Services has a market cap of $6.16 billion and is part of the industrial goods sector. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 2.2% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Quanta Services a buy, no analysts rate it a sell, and two 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, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Granite Construction ( GVA), down 11.6%, China Advanced Construction Materials Group ( CADC), down 4.5%, Dycom Industries ( DY), down 4.3%, and Real Goods Solar ( RSOL), down 4%, were all laggards within the materials & construction industry with Toll Brothers ( TOL) being today's materials & construction industry laggard.

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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