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Incorporated in 1997, Houston-based Quanta Services, Inc. (PWR), boasting a market cap of about $50.5 billion, powers the infrastructure behind energy and communications. Specializing in electric power, renewable energy, and pipeline projects, it provides everything from designing and building power grids to maintaining wind, solar, and hydro facilities. With a diverse range of services - ranging from smart grid installation to emergency restoration - Quanta’s reach spans across North America and internationally, helping shape the future of energy and infrastructure.
Shares of Quanta Services have surged 86.3% over the past 52 weeks and 60.3% on a YTD basis, exceeding the broader S&P 500 Index's ($SPX) 32.1% returns over the past year and 26.2% gains in 2024.
Zooming in further, PWR also significantly outperformed the Industrial Select Sector SPDR Fund’s (XLI) 36.4% gains over the past year and 26.6% returns on a YTD basis.
Quanta Services has been outpacing the broader market, capitalizing on two seismic trends: the rise of high-tech electrical infrastructure and the global push for green energy. As artificial intelligence (AI) accelerates, the demand for smart grids and data centers skyrockets, areas where Quanta excels. With its expertise in wind and solar power, Quanta is positioned for sustained growth.
Its strategic acquisitions, like Cupertino Electric Inc., have given it an edge in the tech-driven energy space, solidifying Quanta’s dominance in both traditional and future-focused markets and driving its remarkable performance.
For the current fiscal year, ending in December, analysts expect Quanta Services’ EPS to surge 20.7% year over year to $7.88. However, the company's earnings surprise history has been mixed, as it has exceeded consensus estimates in three of the last four quarters, while missing in one other occasion.
Among the 17 analysts covering PWR stock, the consensus is a “Strong Buy.” That is based on 13 “Strong Buy” ratings and four “Holds.”
The overall configuration is slightly more bullish than it was three months ago, as the stock attracted a fresh “Strong Buy” rating.
On Nov. 1, Baird raised the target price on PWR to $333 from $320, maintaining an “Outperform” rating on the shares. The upgrade followed a strong margin-driven performance and a modest guidance raise, both fueled by heightened storm activity. The move solidified confidence in the company's solid positioning and growth potential, keeping its stock in the spotlight.
PWR stock currently trades at a premium to the mean price target of $332.19. However, the Street-high target price of $367, set by UBS last month, suggests the stock could rally as much as 5.9%.
