Core Insights - Quanta Services, Inc. (PWR) is strategically positioned to benefit from increased utility investment, grid modernization, and the U.S. energy and manufacturing capacity expansion driven by the Inflation Reduction Act (IRA) [1] - The company reported a record backlog of $35.3 billion as of March 31, 2025, supported by demand for high-voltage transmission, power generation, and advanced infrastructure related to clean energy and domestic industrial activity [1][8] Group 1: Financial Performance and Outlook - Quanta has provided a positive outlook for 2025, driven by rising utility spending, strong base business momentum, and growth in electric infrastructure and data center demand [3] - Earnings estimates for 2025 and 2026 have increased to $10.33 and $11.72 per share, indicating year-over-year growth of 15.2% and 13.5%, respectively [13] Group 2: Risk Management and Strategic Initiatives - The company is mitigating risks associated with policy changes and tariff-related issues through its contract structures, which limit exposure to input cost inflation [2] - Quanta is enhancing supply-chain resilience by investing in U.S.-based transformer manufacturing, which helps clients navigate regulatory changes and reduce reliance on foreign sourcing [4][8] Group 3: Market Position and Competitive Performance - Quanta's stock has outperformed its peers, with a 43.6% increase over the past three months, compared to 22.8% for AECOM and 60.4% for Fluor Corporation [6][8] - The company's current forward 12-month price-to-earnings (P/E) ratio is 34.94, which is higher than AECOM's 20.44 and Fluor's 20.25 [10][12] Group 4: Infrastructure Spending and Growth Opportunities - As infrastructure spending backed by policy gains momentum, Quanta is well-positioned to capture growth opportunities in transmission, renewable energy, and manufacturing-related projects [5] - The company is seeing increased visibility into larger transmission projects, supported by utility spending and accelerated data center expansion [4]

Core Viewpoint - Quanta Services, Inc. is set to release its second quarter 2025 financial results on July 31, 2025, before market opening, followed by a webcast and conference call at 9:00 a.m. Eastern time [1] Group 1: Earnings Release and Webcast Details - The second quarter 2025 earnings release will be accompanied by supplemental earnings materials available on the Investor Relations section of Quanta's website, which will include operational and financial commentary [2] - The earnings webcast will be conducted via web-based audio using a Zoom Webinar, with registration available on Quanta's Investor Relations website [3] - An archive of the webcast will be accessible shortly after the call for those unable to participate live [3] Group 2: Company Overview - Quanta Services is a leader in providing specialized infrastructure solutions across various industries, including utility, renewable energy, technology, communications, pipeline, and energy [4] - The company offers a comprehensive range of services, including the design, installation, repair, and maintenance of energy and communications infrastructure [4] - Quanta operates in the United States, Canada, Australia, and select international markets, equipped with the manpower, resources, and expertise to handle projects of varying scopes [4]

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Quanta Services (PWR) . This company, which is in the Zacks Engineering - R and D Services industry, shows potential for another earnings beat.When looking at the last two reports, this specialty contractor for utility and energy companies has recorded a strong streak of surpassing earnings estimates. The company has topped es ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant challenges and risks [1] Group 1: Company Overview - Quanta Services (PWR) is currently highlighted as a recommended growth stock, benefiting from a favorable Growth Score and a top Zacks Rank [2] - The company operates as a specialty contractor for utility and energy sectors, making it a strong growth pick [3] Group 2: Earnings Growth - Quanta Services has a historical EPS growth rate of 23.2%, with projected EPS growth of 15.2% for the current year, surpassing the industry average of 13.9% [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Quanta Services stands at 24.6%, significantly higher than the industry average of 14.4% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 21.9%, compared to the industry average of 6.2% [6] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Quanta Services, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] Group 5: Investment Positioning - Quanta Services has achieved a Growth Score of B and a Zacks Rank 2, indicating strong potential for outperformance in the growth stock category [9]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Group 1 - Quanta Services (PWR) is currently outperforming the Construction sector, with a year-to-date performance increase of 19.6%, while the sector has seen an average decline of 0.6% [4] - The Zacks Rank for Quanta Services is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the consensus estimate for Quanta Services' full-year earnings has increased by 1.4%, reflecting improving analyst sentiment [3] Group 2 - Quanta Services is part of the Engineering - R and D Services industry, which consists of 17 companies and is currently ranked 97 in the Zacks Industry Rank [5] - The average performance of stocks in the Engineering - R and D Services industry has been a gain of 8.2% this year, indicating that Quanta Services is performing better than its industry peers [5] - Southland Holdings (SLND), another outperforming stock in the Construction sector, has increased by 28.6% year-to-date and has a Zacks Rank of 2 (Buy) [4][5]

Company Performance - Quanta Services (PWR) experienced a price increase of +1.44% to $379.47, outperforming the S&P 500's gain of 0.8% on the same day [1] - Prior to the recent trading session, PWR shares had risen by 9.92%, surpassing the Construction sector's gain of 2.22% and the S&P 500's gain of 5.12% [1] Earnings Projections - The upcoming earnings report for Quanta Services is projected to show earnings per share (EPS) of $2.44, indicating a 28.42% increase from the same quarter last year [2] - Revenue is expected to reach $6.53 billion, reflecting a 16.73% increase compared to the year-ago quarter [2] Full Year Estimates - For the full year, earnings are projected at $10.32 per share and revenue at $27.03 billion, representing increases of +15.05% and +14.18% respectively from the previous year [3] - Changes in analyst estimates for Quanta Services are crucial as they often indicate shifts in short-term business dynamics, with positive revisions suggesting analyst optimism [3] Valuation Metrics - Quanta Services has a Forward P/E ratio of 36.24, which is significantly higher than the industry average of 20.14, indicating a premium valuation [6] - The company's PEG ratio stands at 2.68, compared to the industry average PEG ratio of 1.72, suggesting that the stock is priced higher relative to its projected earnings growth [6] Industry Context - The Engineering - R and D Services industry, which includes Quanta Services, holds a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [7] - The strength of industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Core Insights - The article compares Fluor (FLR) and Quanta Services (PWR) to determine which stock presents a better value opportunity for investors in the Engineering - R and D Services sector [1] Valuation Metrics - Fluor has a forward P/E ratio of 19.78, while Quanta Services has a forward P/E of 34.95 [5] - Fluor's PEG ratio is 2.38, compared to Quanta Services' PEG ratio of 2.59, indicating Fluor may offer better value considering expected earnings growth [5] - Fluor's P/B ratio is 2.29, significantly lower than Quanta Services' P/B ratio of 7.16, suggesting Fluor is more undervalued relative to its book value [6] Earnings Outlook - Fluor currently holds a Zacks Rank of 2 (Buy), indicating an improving earnings outlook, while Quanta Services has a Zacks Rank of 3 (Hold) [3][7] - The improving earnings outlook for Fluor enhances its attractiveness as a value investment [7] Value Grades - Based on various valuation metrics, Fluor holds a Value grade of B, whereas Quanta Services has a Value grade of D, further supporting Fluor as the superior value option [6]

Industry Overview - The United States-based engineering and construction firms are experiencing a boom in public infrastructure demand driven by government initiatives such as the Infrastructure Investment and Jobs Act (IIJA), CHIPS Act, and Inflation Reduction Act (IRA) [1][3] - Public infrastructure spending is at its peak, primarily due to the aim of enhancing supply-chain resilience and boosting domestic manufacturing [3] Company Profiles - EMCOR Group, Inc. (EME) is a leading provider of mechanical and electrical construction, industrial and energy infrastructure, and building services [2] - Quanta Services, Inc. (PWR) specializes in utility and energy infrastructure and is one of North America's top contractors in electric power transmission and distribution [2] EMCOR Group, Inc. (EME) - EMCOR is benefiting from growing infrastructural demand, particularly in data centers, driven by the surge in Artificial Intelligence applications and digital transformation initiatives [5] - The acquisition of Miller Electric on February 3, 2025, enhances EMCOR's electrical construction capabilities and aligns with its growth strategy [6] - As of March 31, 2025, EMCOR's remaining performance obligations (RPOs) reached a record value of $11.75 billion, reflecting a 28% year-over-year growth [7] - EMCOR expects full-year revenues between $16.1 billion and $16.9 billion, indicating year-over-year growth of 10.5-16% [8] Quanta Services, Inc. (PWR) - Quanta's strength lies in delivering complex, large-scale projects such as power grid modernization and renewable energy infrastructure [9] - As of March 31, 2025, Quanta had a total backlog of $35.25 billion, with a 12-month backlog of $19.42 billion, showing significant growth from the previous year [12] - Quanta expects revenues between $26.7 billion and $27.2 billion for 2025, reflecting a 13.8% increase at the midpoint from 2024 [13] Financial Performance and Valuation - EMCOR has a trailing 12-month return on equity (ROE) of 37.1%, significantly higher than Quanta's average of 19.7%, indicating stronger shareholder value generation [10][20] - EMCOR trades at a lower forward price-to-earnings (P/E) ratio compared to Quanta, suggesting a more attractive entry point for investors [10][16] - The Zacks Consensus Estimate for EMCOR's 2025 EPS indicates a 9.6% year-over-year growth, while Quanta's 2025 EPS estimates imply a 15.1% improvement [18][20] Investment Outlook - EMCOR is positioned for steady growth with a discounted valuation, making it an attractive option for investors seeking sustainable returns [22][24] - Quanta, while benefiting from diversified market exposure and energy transition trends, faces challenges due to its premium valuation [23][24]

Core Viewpoint - Quanta Services (PWR) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining stock price movements, as institutional investors often base their valuations on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [4]. Quanta Services' Earnings Outlook - The upgrade for Quanta Services indicates a positive outlook for its earnings, suggesting that the company's underlying business is improving, which should lead to a rise in its stock price [5][10]. - For the fiscal year ending December 2025, Quanta Services is expected to earn $10.33 per share, reflecting a 15.2% increase from the previous year, with a 1.5% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revision features [9][10]. - The Zacks Rank 2 for Quanta Services places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].