Quanta has been a member of our hyper-concentrated electricity mini-portfolio for going-on three years. 3-Year performance: up 285.94% vs the S&P's +68.27%. 1-year performance: up 99.53% vs. +24.03% for the S&P 500. Year to date: up 69.45% vs. +8.39%.
The are the class act of heavy-duty electrical contracting.
First up, the older of the two articles, this from The Trader column at Barron's June 12:
Quanta Services’ AI-Fueled Run Isn’t Done
Key Points
- AI-related and growth stocks experienced a midweek selloff, with the Nasdaq Composite falling 2% amid investor reassessment of valuations.
- Quanta Services benefits from AI’s energy demands, leading to a record $48.5 billion backlog and a 50% share price increase.
- Earnings are projected to rise 26% this year. A $1 billion share repurchase plan was authorized.
Artificial intelligence stocks have reached dizzying levels this year, and some investors are suddenly finding they have a fear of heights. Nothing could be more grounded than Quanta Services.
Tech stocks led the midweek selloff, with the Nasdaq Composite falling 2% on Wednesday, just a few days after it suffered its worst one-day point decline on record on June 5. It’s not surprising that these highfliers would take the brunt of the pain, given how quickly they’ve risen and with old worries like geopolitics and inflation reminding the market that the real world isn’t as cut and dry as a ChatGPT jaw session.
“After a powerful rally, especially in AI-related and growth stocks, investors are reassessing how much they’re willing to pay for future earnings in an environment where interest rates could remain higher for longer,” notes David Miller, chief investment officer at Catalyst Funds.
Quanta Services was caught up in the AI tumult, and that wasn’t a surprise either....
....MUCH MORE
And from Investor's Business Daily, June 16:
IBD Stock Of The Day: AI Data Center, Power Grid Company Trades In Buy Zone
Power plant and grid builder Quanta Services (PWR), a big beneficiary of the AI data center boom, is the IBD Stock of the Day as shares trade in a new buy area.
The nation's largest electrical construction company has seen its backlog swell to a record $48.5 billion as not just data centers but other construction trends sustain growth. At its investor day in March, Quanta drew a path to doubling its adjusted earnings per share by 2030, thanks to growth in electric utility, power generation and large-load markets.
Under its latest forecast, Quanta expects full-year revenue of between $34.7 billion and $35.2 billion and adjusted earnings per share range of $13.55 to $14.25. That would represent a 23% increase in revenue at the midpoint and a 43% increase in EPS.
Analysts' 2026 consensus sales estimates are $34.961 billion in sales and $13.96 in EPS, per FactSet.
Quanta Services Named Top Analyst Pick
Last month, UBS analysts named Quanta one of their top picks in the industrial sector, citing expected spending in electric grid, data centers and power generation, with additional supporting growth from telecom providers.Analyst Steven Fisher said the company's mix of large, fixed price and high voltage grid projects should boost margins. Plus, management is making operational improvements, such as improving communications across its organization in order to enable more resource sharing.
More than 30 analysts cover Quanta. Some 71% have buy or outperform ratings, according to FactSet. Another 23% have hold ratings, and 6% give underperform ratings.
On May 22, the company authorized a new stock buyback of up to $1 billion. That would amount to about 1.375 million shares at current prices, or less than 1% of the floating supply of shares, according to MarketSurge.
Quanta Stock In Buy Zone
After climbing to a record high on May 6, Quanta Services stock pulled back for a quick dip below the 50-day moving average. In just a couple of sessions, the stock was back above the line. That rebound from support also offered an entry at the 21-day exponential moving average, around 703. In addition, the stock moved above a trendline on Monday, providing another entry.
Quanta shares have shot up nearly 300% from a breakout in December 2023, a period that roughly traces the construction boom in data centers....
....MORE, including a bit of chartology.
Coming into the open the stock is up $13.43 (+1.88%) at $728.00 after trading down $4.44 yesterday.
PWR trails another component of the mini-portfolio, GE Vernova at one and three years but is a bit ahead year-to-date.
