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With a market cap of $36.5 billion, Houston, Texas-based Quanta Services, Inc. (PWR) offers infrastructure solutions for the electric and gas utility, renewable energy, communications, pipeline, and energy industries in the United States, Canada, Australia, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Quanta Services fits right into that category, with its market cap exceeding this threshold. The company is one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry.
Despite the solid strenghts, the company has fallen 31.9% from its 52-week high of $365.88, recorded on Jan. 22. PWR shares have fallen 25.9% in the past three months, underperforming the Themes US Infrastructure ETF’s (HWAY) 11.9% decline in the same time frame.
Over the long term, PWR has underperformed HWAY, with its shares falling 7.2% over the past six months, compared to HWAY’s 2% decline over the same time frame.
PWR has been trading below its 200-day moving average since late-February, and under its 50-day moving average since late-January.
PWR stock declined 3.7% following its Q4 earnings release on Feb. 20. The company posted an adjusted profit per share of $2.94, surpassing analysts' expectations of $2.62. However, quarterly revenue rose by 13.3% to $6.55 billion, slightly below the anticipated $6.61 billion. Additionally, Quanta noted that weather, regulatory, and supply chain challenges have affected project timing and execution, potentially impacting future financial results.
PWR’s rival, Fluor Corporation (FLR), has lagged behind, with its shares declining 20.8% over the past six months.
Among the 22 analysts covering the PWR stock, the consensus rating is a “Strong Buy.” The mean price target of $341 implies a potential upside of 36.9% from the current market prices.
