Why Quanta Services (PWR) is a Top Momentum Stock for the Long-Term

Quanta Services (PWR), a leading specialty contractor in the North American electric utility sector, is highlighted as a compelling investment opportunity due to its strong momentum and fundamental outlook. The stock holds a Zacks #2 (Buy) Rank, a B VGM Score, and an A Momentum Style Score, with shares up 9.4% over the past four weeks. Furthermore, eight analysts have recently increased their FY2025 earnings estimates for PWR, raising the Zacks Consensus Estimate by $0.08 to $10.33 per share, alongside an average earnings surprise of 4.8%.

Analysis

Quanta Services (PWR), a specialty contractor for the North American electric utility industry, is exhibiting strong positive momentum underpinned by favorable analyst sentiment. The company holds a Zacks #2 (Buy) rank, supported by an 'A' for Momentum and a 'B' for its overall VGM Style Score. This positive rating is driven by tangible updates to its earnings outlook; eight analysts have revised their fiscal 2025 earnings estimates upward within the last 60 days. Consequently, the Zacks Consensus Estimate for FY2025 has increased by $0.08 to $10.33 per share. This fundamental optimism is reflected in the stock's recent performance, with shares appreciating 9.4% over the past four weeks. Furthermore, PWR has a demonstrated history of outperformance, boasting an average earnings surprise of 4.8%, which suggests a consistent ability to exceed market expectations.

Key Decisions for Investors

• Given the strong upward trend in earnings estimates and recent price appreciation of 9.4%, investors with a bullish thesis on the utility infrastructure space should view PWR as a primary candidate for consideration.
• For momentum-oriented strategies, the combination of an 'A' Momentum Style Score and positive estimate revisions signals that the stock's current upward trend may have fundamental support, warranting a closer look.
• Investors should closely monitor the consensus earnings estimate for any changes, as the positive revision trend is the central pillar of the current buy-rated thesis presented in the analysis.