This company turns trash into cash flow.Whoever first quipped "one person's trash is another's treasure" was on to something. Houston-based Waste Management (WM -0.01%) has turned trash collection and disposal into a very lucrative enterprise. It generated $22 billion in revenue last year and pocketed nearly $3 billion in profit. Demand for WM's services continues to grow, making it a reliable long-term investment. Here's why this Texas-based company could be a great addition to your portfolio. Turning tras ...

Group 1 - TotalEnergies SE has received the Nzombo exploration permit in the Republic of the Congo, enhancing its exploration portfolio [1][3] - The Nzombo permit covers an area of 1,000 km², with TotalEnergies operating 50% of it, while QatarEnergy and SNPC hold 35% and 15%, respectively [2] - Drilling for one exploration well is scheduled to commence before the end of 2025, indicating a strategic timeline for the project [2] Group 2 - The award of the Nzombo permit aligns with TotalEnergies' strategy to grow its exploration portfolio by leveraging existing facilities [3] - TotalEnergies continues its long-term collaboration with the Republic of the Congo, where it operates existing production facilities [3] - TotalEnergies is a global energy company involved in the production and sale of various energy sources, including oil, biofuels, natural gas, and renewable energy [4]

Company Overview - Quanta Services, Inc. (PWR) is headquartered in Houston, Texas, and provides infrastructure solutions for electric and gas utilities, renewable energy, communications, and pipeline and energy industries, with a market cap of $55.6 billion [1] - PWR is recognized as a large-cap stock, indicating its significant size and influence in the engineering and construction industry, with a strong brand presence and diverse geographic reach [2] Financial Performance - PWR's stock has experienced an 8.2% decline from its 52-week high of $424.94, reached on July 25, but has gained 11.9% over the past three months, outperforming the Nasdaq Composite's 11% gains [3] - Year-to-date, PWR shares have risen 23.5%, and over the past 52 weeks, they have climbed 56.1%, surpassing the Nasdaq's YTD gains of 13.3% and 28.6% over the last year [4] - The stock has been trading above its 200-day moving average since early May, indicating a bullish trend [4] Demand and Growth Drivers - The strong performance of PWR is attributed to sustained demand for its services, driven by increasing investments in power grid upgrades and energy infrastructure [5] Recent Earnings Report - In Q2, PWR reported an adjusted EPS of $2.48, exceeding Wall Street expectations of $2.43, with revenue of $6.8 billion, surpassing forecasts of $6.6 billion [6] - The company anticipates full-year adjusted EPS in the range of $10.28 to $10.88 and expects revenue between $27.4 billion and $27.9 billion [6]

Group 1 - The Carillon Scout Mid Cap Fund's second quarter 2025 investor letter indicates that the Russell Midcap Index experienced positive returns despite an initial sell-off in April due to tariff announcements [1] - The delay in collecting additional tariffs has allowed trading partners more time to negotiate better terms, which may positively impact market conditions [1] - Quanta Services, Inc. (NYSE:PWR) is highlighted as a key stock, with a one-month return of -4.62% and a 52-week gain of 49.37%, closing at $373.47 per share with a market capitalization of $55.649 billion [2] Group 2 - Quanta Services, Inc. provides infrastructure solutions for various sectors, including electric and gas utilities, renewable energy, and communications, and is winning new business related to AI power infrastructure and renewable energy projects [3] - The company reported strong financial results for the second quarter of 2025, with revenues of $6.8 billion, net income of $229 million, adjusted diluted earnings per share of $2.48, and adjusted EBITDA of $669 million [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and less downside risk compared to Quanta Services, Inc. [4]

Demand Drivers - Copper consumption has surged due to China's modernization [1] - Renewable energy production growth is boosting copper consumption [1] - Data-center construction boom is contributing to increased copper consumption [1]

Industry Overview - The Zacks Oil and Gas - Production and Pipelines industry includes companies that own and operate midstream energy infrastructure, such as extensive pipeline networks for transporting crude oil, liquids, and natural gas [3] - The industry is capital-intensive, with a debt-to-capitalization ratio of 56.8%, which can limit financial flexibility and investment capacity [4] - Companies are increasingly investing in renewable energy projects, diversifying their portfolios to generate additional cash flows alongside stable fee-based revenues from transportation assets [3] Current Challenges - Conservative capital expenditures by upstream companies may reduce the utilization of midstream assets, impacting revenue [1] - The shift towards renewable energy is expected to decrease demand for traditional pipeline and storage networks for oil and natural gas [5] - Rising regulatory burdens and compliance costs related to greenhouse gas emissions are creating operational and financial pressures on companies [7] - Oil and gas exploration companies are focusing on shareholder returns rather than production growth, which may further reduce demand for midstream services [6] Market Performance - The Zacks Oil and Gas - Production and Pipelines industry has outperformed the S&P 500 and the broader Zacks Oil - Energy sector over the past year, with a growth of 36.2% compared to 10.6% for the S&P 500 and 6.7% for the broader sector [11] Valuation Metrics - The industry is currently trading at a trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 13.93X, which is lower than the S&P 500's 16.89X but higher than the sector's 4.9X [14] Key Companies - **Transportadora de Gas del Sur SA (TGS)**: Operates the most extensive natural gas pipeline network in Latin America, generating stable fee-based revenues [18] - **Kinder Morgan, Inc. (KMI)**: Manages a vast network of pipelines and terminals, providing stable earnings through long-term contracts [20][22] - **Enbridge Inc. (ENB)**: A leading midstream player with a complex transportation network, generating stable revenues from long-term contracts [25][26] - **The Williams Companies Inc. (WMB)**: Focuses on transporting and processing natural gas, well-positioned to meet the demand for clean energy [29][30]