It’s time to sell the shares of this provider of specialty contracting services and infrastructure solutions to the Electric Power, Natural Gas, Pipeline and Fiber Optic industries.
Quanta (PWR)
from BIResearch Updated from Investment Digest Issue 729, October 24, 2012
I had recently indicated if Quanta (PWR) got to $33 we’d sell in favor of companies with more rapid growth. Well, the shares closed at $32.10 on Wednesday, vaulted way past that to about $34.50 first thing Friday morning on the strong earnings and then bounced around that level all day before closing at $34.50 as well, and the shares have traded a little higher since.
So that means, we’re out, and the shares are a Sell/Sold, no longer a “Hold” as noted in yesterday’s update. I calculated the BI Rank and it’s still just an uninspiring 6.3. EPS growth this year is still just 14%, even if off a higher amount in 2013 than originally expected, so sort of ho-hum.
And on a PEG basis the long term growth rate consensus of 11% vs. a PE of 20 isn’t particularly inspiring either. It’s a good stock and a good case to be made for it, but all things considered, we’re out for a 42% gain, in favor of stocks with higher growth prospects.
Tom Bishop, BI Research, www.biresearch.com, February 25, 2014