Quanta Services Inc – Reversal is Approaching for 35% Shorting O

2022年8月19日

If you like this idea, please don’t forget to Boost it.

Fundamental Indicators:

• Sector – Industrials
  
• US Business Cycle Stage – late cycle, when this sector is neutral
  
• Revenue – consistent growth for the past 5 years, with 12% average annual rate
  
• Profits – slight drop in 2022 TTM compared to 2021
  
• Net margin – quite low with 3%
  
• P/E – quite high with 45 ratio compared to S&P500 with 21 and Industrials sector with 21
  
• Liabilities - debt ratio is at 0.61 which is within the norm, Net Debt/ EBITDA is 2.87 – no problems with debt
  
• Conclusion – consistently performing but a little overpriced hence likely to go into correction
  

Technical Analysis (Elliott Waves):

• Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently at the stage of forming corrective wave 4 of higher degree fifth wave (see higher timeframe graph)
  
• From the point of 2020 correction which has been shaped as a Running Triangle this company has enjoyed explosive growth with nearly 500% in stock appreciation
  
• Looking at the lower timeframe it is clearly identifiable that following contracting triangle between April and July 2022 there is a choppy fifth wave which is likely to be an Ending Diagonal (see guidelines for Ending Diagonals below). Wave A of the fifth in this Ending Diagonal is completed and we can expect wave B and C to finalise it
  
• Once it reaches the peak of $148.84, we are likely to see a reversal with mid-term trend towards the level of circa $93 – which may present circa 35% shorting opportunity
  

This is a higher timeframe to reflect the full history of Quanta Services Inc and to provide full wave count:
https://www.tradingview.com/x/8ZrCnvZN/

This is the link to the guidelines for Ending Diagonals

What do you think about Quanta Services Inc and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves. And BOOST this idea if you like it.

Thanks