Quanta is much more than an AI play. Whether or not AI's promises are fulfilled, the power-grid has to be upgraded.
From Investor's Business Daily, 02:43 PM ET 11/28/202:
Quanta Services (PWR) stock is this week's Big Cap 20 pick to watch, as the AI play becomes extended from a proper buy point. The Houston-based company is up 47% year to date as of Friday.
Institutional investors are showing interest in the company, which builds electric plants and provides other services for the power grid. The need for artificial intelligence computations is fueling a boom in data centers, which require massive amounts of electricity. In addition, many companies are shifting manufacturing into the U.S., resulting in more factory construction.
The company's third-quarter earnings report on Oct. 30 had little effect on the stock, and shares have drifted sideways since. But the day following the report, the stock hit a high of 469.43. This could serve as a possible add-on entry if shares can move above that price in strong volume.
Quanta Services stock is primarily worth watching because of its high IBD Ratings. First, a recent run of strong earnings has won Quanta Services stock a high Earnings Per Share Rating of 97, alongside a near-top 98 Composite Rating.
Also, the company has proved to be a steady profit grower, with an Earnings Stability Factor of 4 out of 99 possible, with a lower number being better.
Quanta Services Stock Extends From Cup-Base Entry
With a Relative Strength Rating of 90, Quanta Services is outperforming 90% of all other stocks on a technical level. Shares are now extended from a cup base with a 424.94 buy point. It's a second-stage base....
....MUCH MORE
Today the stock closed up $4.45 (+0.97%) at $464.88, just below that $469.43 all-time-high.
The thing to know about breakout points is: Don't try to front-run them! With patience you will avoid a lot of failed breakouts and the losses and heartache (mainly the losses) they produce. You give up some upside by waiting for a stock to actually get through the buy-point, resistance, whatev but that is an ephemeral cost compared to jumping the gun, getting burned, getting out.
Life is too short for those games.
