Quanta Services (NYSE:PWR) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Quanta Services to “Hold” from “Strong Buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $765.32.
• Quanta reported strong quarterly momentum, with revenue up 41.1% year over year to $9.56 billion and EPS of $4.24, beating consensus estimates of $3.31.
• The stock rose 5.1% to $718.36 amid investor enthusiasm for electricity-demand growth tied to data centers, AI infrastructure and grid modernization, but its elevated valuation and reported insider selling present potential risks.

Quanta Services (NYSE:PWR - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

Other equities research analysts also recently issued research reports about the company. TD Cowen boosted their price objective on Quanta Services from $775.00 to $785.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Raymond James Financial assumed coverage on Quanta Services in a research report on Friday, July 31st. They issued an "outperform" rating for the company. Deutsche Bank Aktiengesellschaft cut shares of Quanta Services to a "sell" rating in a research report on Friday, July 31st. Benchmark cut shares of Quanta Services to a "sell" rating in a report on Friday, July 31st. Finally, Robert W. Baird set a $728.00 target price on shares of Quanta Services in a research note on Friday, July 31st. Twenty-two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Quanta Services has an average rating of "Moderate Buy" and an average price target of $765.32.

Quanta Services Trading Up 5.1%

NYSE PWR opened at $718.36 on Monday. The firm's 50-day moving average is $647.08 and its two-hundred day moving average is $656.55. The stock has a market capitalization of $108.00 billion, a P/E ratio of 82.29, a PEG ratio of 2.02 and a beta of 1.27. Quanta Services has a 12 month low of $404.51 and a 12 month high of $788.75. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.10 and a quick ratio of 1.05.

Quanta Services (NYSE:PWR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The construction company reported $4.24 earnings per share for the quarter, topping analysts' consensus estimates of $3.31 by $0.93. The firm had revenue of $9.56 billion during the quarter, compared to analysts' expectations of $8.61 billion. Quanta Services had a net margin of 4.03% and a return on equity of 20.55%. The firm's quarterly revenue was up 41.1% on a year-over-year basis. During the same quarter last year, the company posted $2.48 EPS. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. On average, sell-side analysts anticipate that Quanta Services will post 15.37 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp boosted its holdings in Quanta Services by 4.7% in the second quarter. State Street Corp now owns 6,581,807 shares of the construction company's stock valued at $4,739,164,000 after purchasing an additional 296,893 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Quanta Services by 5.4% during the first quarter. Bank of America Corp DE now owns 3,444,711 shares of the construction company's stock worth $1,891,215,000 after purchasing an additional 175,184 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Quanta Services by 35.2% in the 4th quarter. Victory Capital Management Inc. now owns 2,915,440 shares of the construction company's stock valued at $1,230,493,000 after purchasing an additional 758,862 shares during the last quarter. Royal Bank of Canada grew its stake in Quanta Services by 7.1% during the 1st quarter. Royal Bank of Canada now owns 1,264,827 shares of the construction company's stock worth $694,415,000 after buying an additional 83,363 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its holdings in shares of Quanta Services by 137.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,151,650 shares of the construction company's stock valued at $486,065,000 after acquiring an additional 667,050 shares during the period. 90.49% of the stock is owned by institutional investors and hedge funds.

Key Quanta Services News

Here are the key news stories impacting Quanta Services this week:

• Positive Sentiment: Investors are extending a broader rerating of Quanta tied to rising electricity demand from data centers, grid modernization and AI infrastructure. Quanta has reported stronger demand across both major operating segments and highlighted increased technology and data-center work. Quanta Services Rallies as Investors Lean Into Grid and Data-Center Power Theme
• Positive Sentiment: Quanta’s second-quarter results showed substantial operating momentum, including $9.56 billion in revenue, 41.1% year-over-year growth and earnings that exceeded consensus expectations. Record backlog and strong demand are supporting an optimistic outlook.
• Positive Sentiment: The company is targeting approximately $2 billion to $2.5 billion in 2026 free cash flow, with improving collections and backlog conversion potentially strengthening cash generation. Quanta Targets Up to $2.5B FCF: Can Cash Momentum Stay Strong?
• Positive Sentiment: Recent research continues to identify PWR as a momentum and growth stock, with AI-related infrastructure demand supporting its investment case. Several analyst targets remain well above the current trading level. Quanta Services Is a Top-Ranked Momentum Stock
• Neutral Sentiment: Truist lowered its price target from $976 to $945 but maintained a “buy” rating, indicating reduced expectations while still seeing considerable upside. Quanta Services Price Target Cut by Truist Financial
• Negative Sentiment: Insider activity is a potential caution signal: reported open-market insider transactions over the past six months included no purchases and 27 sales, including substantial selling by CEO Earl C. Austin Jr. The stock also trades at a demanding valuation, increasing sensitivity to any slowdown in growth or cash-flow execution.

About Quanta Services

Quanta Services, Inc is an infrastructure solutions provider headquartered in Houston, Texas. The company delivers design, engineering, procurement, construction, repair and maintenance services for critical infrastructure across the electric power, energy and communications industries.

Quanta's electric power operations support transmission and distribution networks, substations, renewable energy projects and related grid infrastructure. Its energy services include work on natural gas and other pipeline systems, utility infrastructure, industrial facilities and energy transition projects.

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