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 closed the day up 0.5%. By the end of trading, Quanta Services rose $0.39 (1.3%) to $29.80 on average volume. Throughout the day, 1,875,894 shares of Quanta Services exchanged hands as compared to its average daily volume of 1,885,700 shares. The stock ranged in a price between $29.12-$29.85 after having opened the day at $29.39 as compared to the previous trading day's close of $29.41. Other companies within the Materials & Construction industry that increased today were: Comstock ( CHCI), up 30.7%, Guanwei Recycling ( GPRC), up 13.9%, China Recycling Energy Corporation ( CREG), up 7.2% and MasTec ( MTZ), up 4.7%.
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Quanta Services, Inc. provides specialty contracting services and infrastructure solutions in North America and internationally. It operates in three segments: Electric Power Infrastructure Services; Natural Gas and Pipeline Infrastructure Services; and Fiber Optic Licensing and Other. Quanta Services has a market cap of $6.0 billion and is part of the industrial goods sector. The company has a P/E ratio of 19.4, above the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Quanta Services a buy, no analysts rate it a sell, and 1 rates 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, India Globalization Capital ( IGC), down 10.0%, Pike Electric Corporation ( PIKE), down 8.5%, MagneGas Corporation ( MNGA), down 8.1% and Perma-Fix Environmental Services ( PESI), down 6.3% , were all laggards within the materials & construction industry with PulteGroup ( PHM) 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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