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Quanta Services shares surge on strong growth outlook

EditorAmbhini Aishwarya
Published 11/20/2023, 07:02 PM
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Quanta Services (NYSE:PWR), a leading specialized contracting services company, has recently seen its share price soar by double digits. This spike comes amidst the stock's noted high volatility, characterized by a robust beta—a measure of its volatility in relation to the overall market. As of today, Quanta Services' stock is trading near what is considered its fair value, currently sitting at 13% below the intrinsic value calculated at $210.67.

The company's anticipated profit growth stands at an impressive 72%, which suggests a bright future for cash flow and share valuation improvements. While this potential for growth might already be reflected in the current stock price, shareholders are encouraged to reassess the situation in light of Quanta Services' financial health.

InvestingPro Insights

According to InvestingPro's real-time data, Quanta Services (NYSE:PWR) has a market cap of $26.6 billion and a P/E ratio of 37.97. The company's revenue growth over the last twelve months as of Q3 2023 stood at 17.7%, indicating a steady financial performance.

InvestingPro Tips highlight that Quanta Services' strong earnings should allow management to continue dividend payments, which is a positive indicator for potential investors. Furthermore, net income is expected to grow this year, adding to the company's financial stability. However, it should be noted that 8 analysts have revised their earnings downwards for the upcoming period, indicating potential risks.

In the context of the article, these insights provide a more nuanced understanding of Quanta Services' financial health and future prospects. For a more comprehensive analysis and additional tips, consider subscribing to InvestingPro, now available at a special Black Friday sale with a discount of up to 55%. InvestingPro currently lists 15 more tips for Quanta Services, offering valuable guidance for potential investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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