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

Zacks highlights Quanta Services (PWR), a specialty contracting services provider, as a potential growth stock given its Growth Style Score of B and a VGM Score of B. The company is currently ranked #3 (Hold) by Zacks, but analysts forecast a 15.2% year-over-year earnings growth for the current fiscal year, and the consensus estimate for fiscal 2025 has increased by $0.10 to $10.33 per share based on upward revisions from nine analysts in the last 60 days.

Analysis

Quanta Services (PWR), a prominent provider of specialty contracting services to the North American utility sector, is highlighted by Zacks as a noteworthy stock for potential long-term growth, despite its current Zacks Rank of #3 (Hold). This perspective is underpinned by PWR's strong Style Scores, specifically a B for both Growth and VGM (Value, Growth, Momentum), which, according to Zacks' methodology, indicates potential upside when combined with a #3 Rank. The company is projected to deliver substantial 15.2% year-over-year earnings growth in the current fiscal year. Further bolstering this outlook, nine analysts have revised their fiscal 2025 earnings estimates upward in the last 60 days, increasing the Zacks Consensus Estimate by $0.10 to $10.33 per share. Quanta Services also demonstrates a consistent pattern of exceeding earnings expectations, with an average positive earnings surprise of 4.8%, leading Zacks to suggest PWR 'should be on investors' short list' due to its 'solid Zacks Rank and top-tier Growth and VGM Style Scores.'

Key Decisions for Investors

• Investors focused on growth should consider Quanta Services for their watchlist, given its B-rated Growth Style Score, a projected 15.2% current-year earnings per share growth, and positive analyst revisions for fiscal 2025, which collectively suggest underlying strength despite its Zacks #3 (Hold) rating.
• Evaluate PWR's suitability by weighing its strong growth indicators and consistent earnings outperformance (average 4.8% surprise) against the neutral overall Zacks Rank, considering the company's positioning within the utility contracting sector.
• Monitor upcoming earnings reports and further analyst estimate revisions closely, as sustained positive momentum in these areas could reinforce the growth thesis and potentially lead to an upgrade in its Zacks Rank.