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

Zacks' investment methodology, combining the Zacks Rank with complementary Style Scores (Value, Growth, Momentum, VGM), identifies promising equities. Applying this framework, Quanta Services (PWR), despite a #3 (Hold) Zacks Rank, earns strong 'B' ratings for Growth and VGM. This assessment is underpinned by a forecasted 17.7% year-over-year earnings growth, recent upward revisions to its FY2025 consensus estimate by 10 analysts to $10.56 per share, and a historical 5.7% average earnings surprise, positioning PWR as a noteworthy consideration for growth-oriented investors.

Analysis

Quanta Services (PWR) presents a mixed but compelling profile for growth-oriented investors, according to the provided ratings and data. While the stock holds a neutral Zacks Rank #3 (Hold), its underlying growth metrics are strong, as indicated by a 'B' rating for both its Growth and overall VGM Style Scores. The positive outlook is substantiated by a forecast for 17.7% year-over-year earnings growth in the current fiscal year and a consistent history of outperformance, evidenced by an average earnings surprise of +5.7%. Furthermore, analyst sentiment appears to be improving significantly for the longer term; over the past 60 days, 10 analysts have revised their fiscal 2025 earnings estimates upward, lifting the Zacks Consensus Estimate by $0.22 to $10.56 per share. This combination of a neutral primary rating with strong secondary growth factors and positive forward-looking estimate revisions suggests underlying fundamental strength that may not yet be fully reflected in its main rank.

Key Decisions for Investors

• Investors should weigh the neutral Zacks #3 (Hold) rating against the strong underlying growth indicators, such as the 17.7% forecasted earnings growth and positive analyst revisions.
• Given the positive trend in analyst sentiment for fiscal 2025, it is critical to monitor for continued upward earnings estimate revisions, as this is the key driver of the bullish growth thesis presented.
• For portfolios with a growth mandate, PWR warrants consideration for a short list, as the combination of a 'B' Growth Score and improving consensus estimates may signal future upside potential despite the current 'Hold' classification.