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

Zacks' Focus List, a portfolio of 50 stocks selected based on bullish earnings estimate revisions and a Zacks Rank of #1 or #2, has historically outperformed the S&P 500, with a cumulative return of 2,519.23% versus 854.95% from 1996-2021. Quanta Services (PWR), a leading electric utility contractor, exemplifies this strategy, having seen its shares rise 296.18% to $441.82 since its addition to the list in December 2021, supported by recent upward earnings estimate revisions for fiscal 2025 and an 18% earnings growth forecast for the current fiscal year.

Analysis

The Zacks Focus List, a curated portfolio of 50 stocks, has demonstrated significant historical outperformance, achieving a cumulative return of 2,519.23% from February 1996 to March 2021, considerably exceeding the S&P 500's 854.95% over the same period. This strategy prioritizes stocks with bullish earnings consensus, specifically those ranked #1 (Strong Buy) or #2 (Buy) by Zacks, driven by upward earnings estimate revisions. For 2020, the Focus List gained 13.85% on an annualized basis, compared to the S&P 500's 9.38%.

Quanta Services (PWR), a leading contractor in the North American electric utility transmission and distribution sector, exemplifies the Focus List's potential. Since its inclusion as a #2 (Buy) stock on December 23, 2021, at $111.52 per share, PWR's stock price has surged 296.18% to $441.82, reflecting robust market confidence and fundamental strength.

Recent analyst activity for PWR indicates continued positive momentum, with three analysts revising fiscal 2025 earnings estimates upwards in the last 60 days, leading to a $0.03 increase in the Zacks Consensus Estimate to $10.58. The company also boasts an average earnings surprise of 5.7% and is forecasted to achieve 18% earnings growth for the current fiscal year. These positive revisions align with the Focus List's core methodology, suggesting potential for further price momentum.

Key Decisions for Investors

• Consider Quanta Services (PWR) for long-term growth portfolios, given its strong historical performance, positive earnings revisions, and critical infrastructure role.
• Monitor future earnings estimate revisions for PWR, as they are a key driver of the Zacks Focus List methodology and potential stock price momentum.
• Evaluate the broader Zacks Focus List strategy for identifying market-beating stocks, particularly those with strong Zacks Ranks and upward earnings estimate trends.