Quanta Services (NYSE:PWR) Rating Increased to Buy at Guggenheim

Key Points

• Guggenheim upgraded Quanta Services to “Buy” from “Neutral” and set an $800 price target, implying approximately 18% upside from the reported $676.45 share price. Analysts overall maintain a “Moderate Buy” consensus with an average target of $745.78.
• Quanta’s latest quarter significantly exceeded expectations, with adjusted EPS of $4.24 and revenue of $9.56 billion, up 41.1% year over year. Management raised 2026 guidance to $39.3–$39.7 billion in revenue and $16.45–$16.95 in adjusted EPS, supported by a record $53.4 billion backlog.
• The company authorized a $1 billion share-repurchase program, while institutional investors own 90.49% of the stock. However, insiders sold approximately $123.2 million of shares over the past 90 days, and the stock trades at a premium earnings valuation.

Quanta Services (NYSE:PWR - Get Free Report) was upgraded by equities research analysts at Guggenheim from a "neutral" rating to a "buy" rating in a report released on Friday, Marketbeat Ratings reports. The brokerage presently has a $800.00 target price on the construction company's stock. Guggenheim's target price indicates a potential upside of 18.26% from the stock's current price.

Other equities analysts also recently issued reports about the company. Mizuho set a $645.00 price objective on Quanta Services in a research note on Monday, July 20th. Robert W. Baird lifted their price target on shares of Quanta Services from $606.00 to $777.00 and gave the company an "outperform" rating in a research report on Friday, May 1st. Evercore boosted their price objective on shares of Quanta Services from $635.00 to $800.00 and gave the stock an "outperform" rating in a research note on Friday, May 1st. Cantor Fitzgerald raised their target price on shares of Quanta Services from $630.00 to $901.00 and gave the company an "overweight" rating in a research note on Monday, May 11th. Finally, UBS Group lifted their target price on shares of Quanta Services from $646.00 to $900.00 and gave the company a "buy" rating in a report on Monday, May 4th. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $745.78.

Quanta Services Trading Up 2.8%

NYSE:PWR traded up $18.47 on Friday, reaching $676.45. The stock had a trading volume of 167,701 shares, compared to its average volume of 1,172,059. Quanta Services has a 12-month low of $363.01 and a 12-month high of $788.75. The company has a market cap of $101.51 billion, a price-to-earnings ratio of 93.13, a P/E/G ratio of 2.21 and a beta of 1.21. The firm's fifty day moving average is $681.24 and its two-hundred day moving average is $611.83. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.14 and a quick ratio of 1.09.

Quanta Services (NYSE:PWR - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The construction company reported $4.24 EPS for the quarter, beating analysts' consensus estimates of $3.31 by $0.93. The business had revenue of $9.56 billion during the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a return on equity of 18.64% and a net margin of 3.67%.The business's revenue for the quarter was up 41.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.48 earnings per share. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. Equities analysts expect that Quanta Services will post 12.8 EPS for the current fiscal year.

Quanta Services announced that its board has initiated a share repurchase plan on Friday, May 22nd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 0.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Transactions at Quanta Services

In related news, CAO Paul Nobel sold 4,000 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $756.98, for a total value of $3,027,920.00. Following the sale, the chief accounting officer owned 8,080 shares of the company's stock, valued at $6,116,398.40. This trade represents a 33.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Earl C. Jr. Austin sold 25,992 shares of the business's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $770.71, for a total transaction of $20,032,294.32. Following the transaction, the chief executive officer directly owned 16,508 shares of the company's stock, valued at $12,722,880.68. The trade was a 61.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 159,992 shares of company stock worth $123,244,714. Corporate insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Quanta Services

Several institutional investors have recently bought and sold shares of the stock. State Street Corp boosted its position in shares of Quanta Services by 2.1% in the 4th quarter. State Street Corp now owns 6,206,761 shares of the construction company's stock valued at $2,619,626,000 after purchasing an additional 126,014 shares during the period. Geode Capital Management LLC increased its holdings in shares of Quanta Services by 2.8% during the 4th quarter. Geode Capital Management LLC now owns 4,086,544 shares of the construction company's stock valued at $1,718,371,000 after acquiring an additional 110,360 shares during the last quarter. Bank of America Corp DE boosted its position in 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 period. Victory Capital Management Inc. grew its holdings in Quanta Services by 35.2% during the fourth 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. Finally, Norges Bank bought a new position in shares of Quanta Services in the fourth quarter valued at approximately $817,285,000. Institutional investors and hedge funds own 90.49% of the company's stock.

Key Quanta Services News

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

• Positive Sentiment: Q2 results substantially exceeded expectations. Adjusted diluted EPS was $4.24, ahead of consensus estimates near $3.29-$3.31 and up from $2.48 a year earlier. Revenue increased 41.1% year over year to $9.56 billion, surpassing estimates of approximately $8.6 billion. Quanta Services Reports Second Quarter 2026 Results
• Positive Sentiment: Management raised full-year 2026 guidance across key metrics. The company now expects revenue of $39.3 billion to $39.7 billion and adjusted EPS of $16.45 to $16.95, well above consensus revenue of about $35.0 billion and EPS of approximately $13.78. Quanta Projects 2026 Revenue Outlook
• Positive Sentiment: Visibility and cash generation remain strong. Total backlog reached a record $53.4 billion, including $33.6 billion of remaining performance obligations. Quarterly operating cash flow was $1.1 billion and free cash flow was $0.9 billion, supporting confidence in future execution. PWR Q2 Earnings Beat and Outlook Raised
• Neutral Sentiment: The strong outlook is already being assessed against a premium valuation: PWR trades at a high earnings multiple, so continued share-price gains may depend on further earnings growth and successful delivery of the large backlog.

About Quanta Services

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.

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