Trade-Ideas: Quanta Services (PWR) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Quanta Services ( PWR) as a post-market leader 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 $68.6 million.
  • PWR is up 2.4% today from today's close.

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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 18.2. Currently there are 10 analysts that rate Quanta Services a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Quanta Services has been 1.5 million shares per day over the past 30 days. Quanta Services has a market cap of $7.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.57 and a short float of 1.1% with 1.21 days to cover. Shares are up 5.1% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, increase in net income, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues rose by 32.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • PWR's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, PWR has a quick ratio of 1.79, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Construction & Engineering industry average, but is less than that of the S&P 500. The net income increased by 1.9% when compared to the same quarter one year prior, going from $92.91 million to $94.65 million.
  • QUANTA SERVICES INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QUANTA SERVICES INC increased its bottom line by earning $1.87 versus $1.36 in the prior year. This year, the market expects an improvement in earnings ($1.99 versus $1.87).
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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