Quanta Services (PWR) Upgraded to Buy: Here's What You Should Know

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].