Quanta Services is Thursday's pick for IBD 50 Growth Stocks To Watch from Investor's Business Daily as the energy infrastructure provider recently raised its earnings outlook. Quanta stock is building the right side of a cup base.
Shares took a breather and retreated around 1% Thursday, after easing 0.1% Wednesday.
Quanta Services provides infrastructure and maintenance to the electric power, underground oil and gas pipeline, transmission and renewable energy industries.
Its renewable segment serves solar, wind, hydrogen and battery energy storage businesses.
It ranks No. 3 out of 24 stocks in the Building-Heavy Construction group. The group swiftly rose to the 41st spot from the 127th four weeks ago. IBD tracks 197 industry groups in all. Moreover, the group's Relative Strength Rating is an A-.
Quanta has the largest market capitalization of the group, at $50.5 billion and its 98 IBD Earnings Per Share Rating ranks second highest among the 24 companies.
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Quanta Stock Climbs In A Base
Quanta Services stock is forming the right side of a deep, early-stage cup with a 365.88 buy point, according to MarketSurge pattern recognition. The entry point is its all-time high, reached on Jan. 22.
Quanta stock is on track for five positive weeks out of the last six. Shares have gained nearly 50% from the bottom of a base reached April 7. Its relative strength line is back near its high.
Volume has been drying up as the stock climbs up the base, which isn't ideal. And mutual fund ownership dropped a modest 1% in March, according to IBD Stock Checkup.
But Quanta stock's IBD Timeliness Rating of A indicates potential positive relative price performance over the next 12 months.
Energy Infrastructure Name Raises Outlook
Quanta reported higher-than-expected earnings and revenue for its fiscal first quarter on May 1. It also raised its full-year 2025 profit projection to a range of $10.05 to $10.65 per share and its sales forecast to $26.7 billion and $27.2 billion. Both ranges' midpoints were above views. It also saw a record backlog of $35.3 billion.
"Both our Electric Infrastructure Solutions and Underground and Infrastructure Solutions segments delivered improved profitability, reflecting continued sound performance and safe execution," Quanta Services Chief Executive Duke Austin said in the earnings release.
The company's first-quarter earnings rose 26% on 24% sales growth. But quarterly projections show revenue growth decelerating to 17% in the second quarter, slipping to 7% over the next four quarters.
Analysts' full-year 2025 earnings growth estimates recently were revised upward to 15%. They see that figure at 14% for 2026.
Further, the company has been a steady profit grower as seen in its Earnings Stability factor of 6 out of 99 possible — with a lower number being better. Also, Quanta stock holds an IBD Composite Rating of 97 out of a best-possible 99.
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