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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 $39.7 billion by market cap, the company also installs transportation control and lighting systems and provides specialty electric power and communication services for industrial and commercial customers.
Shares of this leading provider of specialized contracting services have outperformed the broader market over the past year. PWR has gained 31.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.7%. In 2024, PWR stock is up 25.3%, surpassing SPX’s 18% rise on a YTD basis.
Zooming in further, PWR’s outperformance looks more pronounced compared to the iShares U.S. Infrastructure ETF (IFRA). The exchange-traded fund has gained about 17.5% over the past year. Moreover, PWR’s gains on a YTD basis outshine the ETF’s 12% returns over the same time frame.
PWR's strong price momentum stems from rising demand for modernizing utility infrastructure and expanding renewable energy generation, supported by grid modernization initiatives, effective resource management, business acquisitions, and emergency restoration efforts.
On Aug. 1, PWR shares closed down more than 3% after reporting its Q2 results. Its adjusted EPS of $1.90 fell short of Wall Street expectations of $1.93. The company’s revenue was $5.6 billion, exceeding Wall Street forecasts of $5.5 billion. PWR expects full-year adjusted EPS to be between $8.32 and $8.87 and revenue to be between $23.5 billion and $24.1 billion.
On Jul. 18, PWR shares closed up more than 8% after acquiring Cupertino Electric for about $1.5 billion.
For the current fiscal year, ending in December, analysts expect PWR’s EPS to grow 18.8% to $7.76 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 14 analysts covering PWR stock, the consensus is a “Strong Buy.” That’s based on 12 “Strong Buy” ratings and two “Holds.”
On Aug. 8, TD Cowen analyst Marc Bianchi maintained a “Buy” rating on PWR with a price target of $280, implying a potential upside of 3.6% from current levels. He upgraded PWR based on strong financial performance, strategic acquisitions, backlog growth, and a positive outlook on utility spending.
The mean price target of $291.83 represents a 7.9% premium to PWR’s current price levels. The Street-high price target of $319 suggests an upside potential of 18%.
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.
