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

Quanta Services (PWR), a prominent North American electric utility contractor, is identified by Zacks as a compelling growth stock. The company holds a Zacks Rank #2 (Buy), a VGM Score of B, and a Growth Style Score of B, underpinned by a projected 18% year-over-year earnings growth for the current fiscal year. This positive outlook is further supported by three analysts revising fiscal 2025 earnings estimates upward in the last 60 days, pushing the Zacks Consensus Estimate to $10.58 per share, alongside an average earnings surprise of +5.7%.

Analysis

Quanta Services (PWR), a prominent contractor in the North American electric utility transmission and distribution sector, currently holds a Zacks Rank #2 (Buy) and a strong VGM Score of B. The company demonstrates robust growth potential, underscored by a Growth Style Score of B and a forecasted 18% year-over-year earnings growth for the current fiscal year. This positioning highlights PWR as a compelling opportunity within the infrastructure services industry.

Analyst sentiment for PWR remains notably positive, with three analysts having revised their fiscal 2025 earnings estimates higher over the past 60 days. This collective upward adjustment has increased the Zacks Consensus Estimate by $0.03 to $10.58 per share, reinforcing a favorable outlook. Furthermore, PWR has consistently outperformed expectations, reporting an average earnings surprise of +5.7%.

The combination of a solid Zacks Rank and top-tier Growth and VGM Style Scores aligns with Zacks' methodology for identifying stocks with a high probability of outperformance. PWR's strategic role in critical infrastructure development, coupled with its consistent earnings performance and positive analyst revisions, suggests a strong fundamental basis for continued growth. The overall sentiment surrounding PWR is extremely positive, reflecting confidence in its future trajectory.

Key Decisions for Investors

• Investors should consider Quanta Services (PWR) for growth-oriented portfolios, given its Zacks Rank #2 (Buy), strong Growth Style Score of B, and projected 18% year-over-year earnings growth.
• It would be prudent to monitor future analyst earnings estimate revisions and continued positive earnings surprises, as these are key indicators of sustained momentum and operational strength.
• Given PWR's role in the electric utility infrastructure, investors should also assess broader trends in infrastructure spending and energy transition initiatives that could further bolster its long-term outlook.