Quanta Story

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PWR -- USA Stock  

USD 95.28  1.27  1.35%

The predictive indicators we use to evaluate Quanta help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Quanta Services. We apply different methods to arrive at the intrinsic value of Quanta based on widely used predictive technical indicators. My story will sum up Quanta Services. We will evaluate if Quanta Services shares are reasonably priced going into March.
Published over a month ago
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Volatility may be your only friend when it comes to investing in Quanta Services
Macroaxis provides advice on Quanta Services to complement and cross-verify current analyst consensus on Quanta Services. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
The company has Net Profit Margin of 3.45 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 7.85 %, which entails that for every 100 dollars of revenue, it generated 0.08 of operating income.
The successful prediction of Quanta Services stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Quanta Services, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Quanta Services based on Quanta Services hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Quanta Services's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Quanta Services's related companies.

Use Technical Analysis to project Quanta expected Price

Quanta Services technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Quanta Services technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Quanta Services trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Quanta Services, but it might be worth checking our own buy vs. sell analysis

Another Outlook On Quanta Services

The latest bullish price patterns experienced by current Quanta Services shareholders may encourage retail investors to take a closer look at the company as it is trading at a share price of 85.28 on 1,342,280 in trading volume. The company executives have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.18. The current volatility is consistent with the ongoing market swings in January 2021 as well as with Quanta Services unsystematic, company-specific events.
 2020 2021 (projected)
Consolidated Income289.64 M312.51 M
Direct Expenses9.46 B7.76 B

Deferred Revenue Breakdown

Quanta Services Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to grow to about 387.7 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Quanta Services Deferred Revenue is relatively stable at the moment as compared to the past year. Quanta Services reported last year Deferred Revenue of 359.31 Million
201031.14 Million
2011144.6 Million
2012173.88 Million
2013239.11 Million
2014251.11 Million
2015399.23 Million
2020359.31 Million
2021387.67 Million

Quanta Services implied volatility may change after the spike

Latest potential upside is at 3.73. Quanta Services currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.03. However, we advise investors to further question Quanta Services expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Quanta Services' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Quanta Services' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While other companies under the engineering & construction industry are still a bit expensive, Quanta Services may offer a potential longer-term growth to retail investors. The inconsistency in the assessment between current Quanta valuation and our trade advice on Quanta Services is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Quanta Services.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Quanta Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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