Is the energy industry boom coming to an end? Not likely given consumer strength domestically, falling inflation rates and geopolitical turmoil in the Middle East. Among energy services companies Quanta Services is getting stronger. On Wednesday the Relative Strength (RS) Rating for Quanta stock climbed to 81, up from 74.
Quanta stock is up nearly 7% so far this week. It's extending its rise above both its 50-day and 200-day lines.
The upgraded 81 RS Rating for Quanta stock means the company bested 81% of all stocks for price performance this past year.
It's a notable bump higher because a study of over 100 years of market history shows that the stocks that go on to make the biggest gains often have an 80 or higher RS Rating as they launch their biggest climbs.
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Quanta Stock Among Top 6% Overall
Among its other key ratings Quanta stock has a 94 Composite Rating, a combination of IBD's five other key ratings. The best stocks have a 90 or better Composite. It also carries a terrific 95 Earnings Per Share Rating, of a best-possible 99, amid rising sales and profits.
Houston-based Quanta Services provides specialty contracting services to the electric power, gas and oil pipeline industries. On its website Quanta describes itself as a family of companies.
"Quanta has built the largest skilled-labor force in North America by uniting over 200 operating companies to tackle the most complex infrastructure challenges in the world," the company said.
Big Funds Are Buying Quanta
Additionally, it has a B Accumulation/Distribution Rating, which shows that mutual funds, ETFs and the like are buying more shares than selling. Also, the number of funds holding shares of Quanta stock jumped from 256 in March to 458 in the September-ended quarter, the most recent period for which data is available.
Quanta stock is building a consolidation with a 212.82 buy point. See if the stock can break out in heavy trading. Wednesday afternoon, Quanta traded above 185, up about 1.4% for the day. Hightower Advisors recently bought shares of the energy industry services company.
In terms of top and bottom line numbers, Quanta Services has posted two quarters of accelerating earnings growth. Revenue growth has also risen over the same time frame. Last quarter it reported a 27% rise in earnings to $2.24 per share, on a 26% hike in revenue to $5.62 billion.
Quanta stock holds the No. 5 rank among its peers in the 19-stock Building-Heavy Construction industry group. Argan and Construction Partners are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The proprietary Relative Strength Rating from IBD tracks market leadership by showing how a stock's price movement over the last 52 weeks compares to that of other stocks on the major indexes.
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