What Makes Quanta Services (PWR) a Lucrative Investment?

Fund Performance - Baron Durable Advantage Fund returned 2.6% in Q4 2025, closely matching the S&P 500 Index's return of 2.7% [1] - The Fund achieved a total return of 16.6% for the year 2025, compared to 17.9% for the S&P 500 Index and 16.1% for the Morningstar Large Growth Category average [1] Investment Focus - In 2026, the Fund aims to invest in high-quality, large-cap companies with strong competitive advantages, proven track records, and consistent shareholder returns, amidst geopolitical challenges and evolving regulatory trends [1] Quanta Services, Inc. Overview - Quanta Services, Inc. (NYSE:PWR) is a leading specialized contract services company providing infrastructure solutions across various sectors, including electric and gas utilities, renewable energy, and telecommunications [2] - As of February 11, 2026, Quanta Services, Inc. stock closed at $523.96 per share, with a one-month return of 17.05% and a twelve-month increase of 80.14% [2] Investment Rationale for Quanta Services, Inc. - The Fund initiated a new position in Quanta Services, Inc. due to its strong track record, with revenue and EPS compounding at 14% and 18% CAGR over the last 15 years, respectively [3] - Quanta has achieved growth in a flat electric load environment, driven by significant market share gains [3] - The company is expected to benefit from secular growth trends in energy-related infrastructure, supported by its competitive position and skilled labor force [3] - Quanta is projected to grow its earnings at a mid-teens rate or better, with a capable management team to execute its growth strategy [3]