/Quanta%20Services%2C%20Inc_%20logo%20and%20stock%20data-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Quanta Services, Inc. (PWR), headquartered in Houston, Texas, provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries. Valued at $55.6 billion by market cap, the company also installs transportation control and lighting systems and provides specialty electric power and communication services for industrial and commercial customers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PWR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the engineering & construction industry. PWR is a market leader in specialized contracting services, with a strong brand presence and diverse geographic reach. Its broad portfolio of services, including engineering, procurement, and construction, coupled with a skilled workforce and commitment to safety and quality, enables efficient project execution and fosters long-term client relationships. Strategic acquisitions further expand its service offerings and customer base, driving growth and market leadership.
Despite its notable strength, PWR slipped 8.2% from its 52-week high of $424.94, achieved on Jul. 25. Over the past three months, PWR stock gained 11.9% outperforming the Nasdaq Composite’s ($NASX) 11% gains during the same time frame.
In the longer term, shares of PWR rose 23.5% on a YTD basis and climbed 56.1% over the past 52 weeks, outperforming NASX’s YTD gains of 13.3% and 28.6% returns over the last year.
To confirm the bullish trend, PWR has been trading above its 200-day moving average since early May. The stock is trading above its 50-day moving average recently.
PWR's strong performance is driven by sustained demand for Quanta's services, fueled by increasing investments in power grid upgrades and energy infrastructure.
On Jul. 31, PWR shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS of $2.48 topped Wall Street expectations of $2.43. The company’s revenue was $6.8 billion, beating Wall Street forecasts of $6.6 billion. PWR expects full-year adjusted EPS in the range of $10.28 to $10.88, and expects revenue in the range of $27.4 billion to $27.9 billion.
In the competitive arena of engineering & construction, Comfort Systems USA, Inc. (FIX) has taken the lead over PWR, showing resilience with a 77.4% uptick on a YTD basis and 137.1% gains over the past 52 weeks.
Wall Street analysts are reasonably bullish on PWR’s prospects. The stock has a consensus “Moderate Buy” rating from the 28 analysts covering it, and the mean price target of $426.83 suggests a potential upside of 9.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
