Quanta Services has a low valuation, suggesting a continuation of prices above the significant technical levels being tested.
According to Thomson Reuters consensus from the latest estimates of analysts, the share is trading, on the basis of the current price, 16.7 and 13.69 times the expected results for the current year and the following year. In terms of enterprise value, that is to say the capitalization of the group plus net debt, for a price of USD 22.95, the company is worth 0.52 times its sales. Except in case of strong downward revisions of earnings estimates, these low valuation levels theoretically limit the potential fallback.
The share has a bearish configuration below the USD 23.13 resistance. Nevertheless, the potential drop is limited by the support area located at USD 19.83 in daily data and USD 17.66 in weekly data. These levels are tested for several weeks and have contained the downward trend, which reinforce their technical significance.
Considering these elements, the timing seems appropriate to buy the stock above USD 23.1. In case of crossing of this resistance, it would help to set a target at USD 25.6 resistance. A stop order can be fixed below USD 21.9.
Quanta Services, Inc. is one of the leading providers of specialized services for infrastructures in the United States. Net sales break down by area of activity as follows:
- electric power (58.7%): design, installation, repair and maintenance of onshore infrastructures, consulting and technical support services, etc.;
- oil and gas (27.2%): construction, installation and maintenance of onshore infrastructures (pipelines, production facilities, etc.) and offshore infrastructures (submarine pipelines, oil platforms, etc.) and logistics services;
- renewable energies (14.1%): engineering, construction, maintenance and repair of wind, solar and hydroelectric power generation facilities.
Net sales break down geographically as follows: the United States (85.3%), Canada (12%), Australia (1.7%) and other (1%).
QUANTA SERVICES, INC. 
