Wall Street Zen Upgrades Quanta Services (NYSE:PWR) to Buy

Key Points

• Wall Street Zen upgraded Quanta Services to “buy” from “hold,” adding to broadly positive analyst sentiment. Nineteen analysts rate the stock Buy, with a consensus target price of $752.78.
• Quanta reported a strong quarterly performance, with EPS of $4.24 and revenue of $9.56 billion exceeding estimates; revenue rose 41.1% year over year. The company also cited a record $53.4 billion backlog and raised its 2026 EPS guidance to $16.45–$16.95.
• Valuation remains elevated, with the stock trading at a high P/E multiple, while insiders sold approximately $123.2 million of shares during the quarter. The company separately authorized a $1 billion share-buyback program.

Quanta Services (NYSE:PWR - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday.

Other equities analysts also recently issued reports about the company. Robert W. Baird set a $728.00 target price on Quanta Services in a research note on Friday. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $714.00 price target on shares of Quanta Services in a research report on Tuesday, July 21st. Roth Capital raised their price target on Quanta Services from $600.00 to $650.00 and gave the stock a "buy" rating in a report on Monday, April 6th. The Goldman Sachs Group boosted their price objective on Quanta Services from $685.00 to $826.00 and gave the company a "buy" rating in a research report on Monday, May 4th. Finally, Truist Financial increased their target price on Quanta Services from $851.00 to $940.00 and gave the stock a "buy" rating in a research report on Thursday, July 2nd. Nineteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Quanta Services presently has an average rating of "Moderate Buy" and a consensus target price of $752.78.

Quanta Services Trading Up 1.5%

Quanta Services stock opened at $667.83 on Friday. Quanta Services has a 1 year low of $363.01 and a 1 year high of $788.75. The firm's 50-day moving average is $680.15 and its 200-day moving average is $612.22. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.09 and a current ratio of 1.10. The company has a market cap of $100.21 billion, a P/E ratio of 76.50, a PEG ratio of 2.63 and a beta of 1.21.

Quanta Services (NYSE:PWR - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The construction company reported $4.24 earnings per share 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 net margin of 4.03% and a return on equity of 20.55%. The company's revenue for the quarter was up 41.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.48 EPS. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. On average, equities analysts expect that Quanta Services will post 12.8 earnings per share for the current year.

Quanta Services announced that its board has authorized a share buyback plan on Friday, May 22nd that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the construction company to reacquire up to 0.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Insider Activity at Quanta Services

In related news, CAO Paul Nobel sold 4,000 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $756.98, for a total value of $3,027,920.00. Following the completion of the transaction, the chief accounting officer directly owned 8,080 shares of the company's stock, valued at $6,116,398.40. This represents a 33.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Earl C. Jr. Austin sold 130,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $770.65, for a total value of $100,184,500.00. Following the completion of the sale, the chief executive officer owned 556,911 shares in the company, valued at approximately $429,183,462.15. This represents a 18.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 159,992 shares of company stock valued at $123,244,714. Insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Quanta Services

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cedar Mountain Advisors LLC grew its position in Quanta Services by 321.4% in the 4th quarter. Cedar Mountain Advisors LLC now owns 59 shares of the construction company's stock valued at $25,000 after buying an additional 45 shares in the last quarter. Darwin Wealth Management LLC acquired a new position in Quanta Services during the 2nd quarter valued at about $26,000. Boreal Capital Management LLC bought a new stake in shares of Quanta Services during the 1st quarter worth about $27,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Quanta Services in the 4th quarter worth approximately $28,000. Finally, MV Capital Management Inc. acquired a new stake in shares of Quanta Services in the 4th quarter worth approximately $30,000. 90.49% of the stock is currently owned by institutional investors.

Key Headlines Impacting Quanta Services

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

• Positive Sentiment: Q2 earnings and revenue beat estimates. Quanta reported adjusted diluted EPS of $4.24, versus consensus estimates near $3.30, while revenue reached $9.56 billion compared with expectations of approximately $8.6 billion. Revenue increased 41.1% from the prior year, and adjusted EBITDA rose to $1.1 billion. Quanta Services Reports Second Quarter 2026 Results
• Positive Sentiment: Record backlog supports future growth. Total backlog reached $53.4 billion, including $33.6 billion in remaining performance obligations. Management cited broad infrastructure demand, electric-sector strength and acquisitions as key growth drivers. Operating cash flow was a record $1.1 billion, with free cash flow of $0.9 billion. Quanta Services Q2 Earnings Call Highlights Growth and Backlog Strength
• Positive Sentiment: Quanta raised its 2026 financial expectations across metrics. The company now projects revenue of $39.3 billion to $39.7 billion and adjusted EPS of $16.45 to $16.95, both well above prior consensus expectations. The higher outlook signals management’s confidence that strong demand and execution will continue. Quanta Projects 2026 Revenue as Record Backlog Supports Raised Outlook
• Positive Sentiment: Guggenheim upgraded PWR to “buy” from “neutral” and assigned an $800 price target. The upgrade adds further positive momentum following the earnings report and reflects greater confidence in Quanta’s growth outlook. The Fly Analyst Update
• Negative Sentiment: Valuation remains elevated. With a reported price-to-earnings ratio above 90, PWR’s stock price already reflects substantial growth expectations. Any slowdown in infrastructure demand, execution problems or disappointment with future guidance could increase volatility.

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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