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Houston, Texas-based Quanta Services, Inc. (PWR) provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the U.S. and internationally. Valued at $49.3 billion by market cap, Quanta is a leading provider of specialty contracting services and one of the largest contractors serving the electric transmission and distribution industry.
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, reflecting its substantial size, influence, and dominance in the engineering & construction industry.
Quanta recently touched its all-time high of $350.19 on Nov. 26 and is currently trading 4% below that peak. PWR stock has surged 25.2% over the past three months outperforming the Industrial Select Sector SPDR Fund’s (XLI) 6.6% gains during the same time frame.
Over the longer term, Quanta’s performance looks even more appealing. PWR stock soared 55.8% on a YTD basis and 63.7% over the past 52 weeks, outpacing XLI’s 20.9% gains in 2024 and 24.7% returns over the past year.
To confirm the bullish trend, PWR has consistently traded above its 200-day moving average over the past year and above its 50-day moving average since mid-September.
Quanta Services’ stock dipped 3.2% after the release of its Q3 results on Oct. 31 as its revenue of $6.5 billion missed Wall Street’s expectations by a small margin, but was still up by an impressive 15.5% compared to the year-ago quarter. Driven by its extensive portfolio, solid execution and strong demand, Quanta has continued to deliver profitable growth over the past quarters. At the end of the quarter, its backlog reached a staggering $34 billion. Meanwhile, the company reported a massive 21.4% year-over-year growth in adjusted EPS, reaching $2.72, exceeding analysts’ estimates. Furthermore, Quanta has reported an even more impressive growth in cash flow generation, with its free cash flow surging 92.8% compared to the year-ago quarter to $539.5 million.
Despite experiencing the massive surging in stock prices, Quanta has lagged behind its peer EMCOR Group, Inc.’s (EME) 122.9% gains on a YTD basis and 121.6% returns over the past year.
The stock has a consensus “Strong Buy” rating among the 18 analysts covering it. As of writing, Quanta is trading marginally below its mean price target of $336.24.
