Power play: Rebuilding the electric power grid
"The Obama administration is poised to spend a lot of money on infrastructure; one important sector is the the nation's electric power grid and the communications system," notes growth stock advisor Dave Dyer.BigCharts:
In his Dave Dayer's Newsletter, he explains, "Some products will win big, others will get nothing, but one company will get more business regardless of which products win: Quanta Services (NYSE: PWR), the leading electrical contractor in the country.
"Quanta's service business stands ready to expand with the infrastructure buildout no matter which products are selected.
"They do design, installation, maintenance, and repair on just about any type of network infrastructure (electric power, telecom, broadband cable, and gas pipelines.) Their moat against competitors is size. They are the largest in their field and that is in no danger of changing.
"With more than 17,000 employees, offices in 40 states, and long-term relationships with sub-contractors, they have the resources to complete projects anywhere in North America.
"A typical project is one just awarded to them by Oklahoma Gas and Electric for the construction of approximately 120 miles of 345,000 volt transmission infrastructure just outside of Oklahoma City.
"This $4.1 billion market cap company is only 12 years old. Their rapid growth has been fueled by the new demand created when the aging power grid met deregulation. Rapid revenue growth, strong profits, and low debt have been a winning combination for PWR.
"For the last 3 quarters, revenue has grown at 48%, 74%, and 61% compared with the same quarter in the prior year. Over the same 3 quarters, EPS has grown at 29%, 44%, and 39%. Debt is only 7% of equity. Most of their revenue (57%) comes from services to the electric power industry....MORE