Quanta Services (NYSE:PWR) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of Quanta Services (NYSE:PWR) from a hold rating to a buy rating in a research note published on Sunday morning.

A number of other brokerages also recently issued reports on PWR. Mizuho set a $645.00 price objective on shares of Quanta Services in a research report on Monday, July 20th. Zacks Research cut shares of Quanta Services from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 6th. The Goldman Sachs Group lifted their target price on shares of Quanta Services from $685.00 to $826.00 and gave the company a “buy” rating in a research note on Monday, May 4th. Evercore boosted their price target on shares of Quanta Services from $635.00 to $800.00 and gave the company an “outperform” rating in a research report on Friday, May 1st. Finally, CICC Research began coverage on shares of Quanta Services in a report on Thursday, May 21st. They issued an “outperform” rating and a $872.00 price objective for the company. Nineteen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $758.96.

Quanta Services Stock Performance

Shares of NYSE PWR opened at $693.37 on Friday. The stock’s 50-day moving average is $678.34 and its 200 day moving average is $616.97. The stock has a market cap of $104.24 billion, a price-to-earnings ratio of 79.42, a P/E/G ratio of 2.68 and a beta of 1.23. Quanta Services has a 1-year low of $363.01 and a 1-year high of $788.75. The company has a current ratio of 1.10, a quick ratio of 1.05 and a debt-to-equity ratio of 0.56.

Quanta Services (NYSE:PWR) last issued its earnings results on Thursday, July 30th. The construction company reported $4.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.31 by $0.93. Quanta Services had a return on equity of 20.55% and a net margin of 4.03%.The business had revenue of $9.56 billion during the quarter, compared to analyst estimates of $8.61 billion. During the same quarter in the prior year, the firm earned $2.48 earnings per share. Quanta Services’s revenue for the quarter was up 41.1% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. On average, sell-side analysts anticipate that Quanta Services will post 12.8 EPS for the current fiscal year.

Quanta Services declared that its Board of Directors has initiated a stock repurchase program on Friday, May 22nd that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the construction company to reacquire up to 0.9% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Quanta Services Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, July 13th. Shareholders of record on Wednesday, July 1st were issued a $0.11 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $0.44 annualized dividend and a yield of 0.1%. Quanta Services’s payout ratio is 5.04%.

Institutional Trading of Quanta Services

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank bought a new stake in Quanta Services in the 4th quarter worth about $817,285,000. Victory Capital Management Inc. raised its holdings in shares of Quanta Services by 35.2% during the fourth quarter. Victory Capital Management Inc. now owns 2,915,440 shares of the construction company’s stock valued at $1,230,493,000 after purchasing an additional 758,862 shares during the last quarter. Corient Private Wealth LLC raised its holdings in shares of Quanta Services by 137.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,151,650 shares of the construction company’s stock valued at $486,065,000 after purchasing an additional 667,050 shares during the last quarter. Sands Capital Management LLC bought a new position in Quanta Services during the fourth quarter valued at approximately $243,485,000. Finally, Select Equity Group L.P. boosted its holdings in Quanta Services by 69.3% in the second quarter. Select Equity Group L.P. now owns 1,017,123 shares of the construction company’s stock worth $384,554,000 after purchasing an additional 416,395 shares during the last quarter. Institutional investors own 90.49% of the company’s stock.

Quanta Services News Roundup

Here are the key news stories impacting Quanta Services this week:

• Positive Sentiment: Truist reaffirmed its “buy” rating and raised its price target to $976 from $940, signaling continued confidence in Quanta’s long-term growth prospects. Benzinga
• Positive Sentiment: Mizuho increased its price target to $741 from $659. Although the firm maintained a “neutral” rating, the higher target reflects improved expectations for the infrastructure-services contractor. The Fly
• Positive Sentiment: Guggenheim upgraded Quanta Services, adding another favorable analyst signal for the stock. Quanta Services upgraded at Guggenheim
• Positive Sentiment: The company’s latest quarterly results were strong, with earnings and revenue substantially exceeding consensus estimates and revenue rising 41.1% year over year. This supports the investment case tied to demand for power, utility and infrastructure construction.
• Neutral Sentiment: Quanta priced $2 billion of senior notes: $500 million due in 2029 at 4.850%, $750 million due in 2033 at 5.300% and $750 million due in 2036 at 5.550%. Proceeds could support expansion and corporate purposes, with closing expected August 6. Quanta Services Announces Pricing of Senior Notes Offering
• Negative Sentiment: The debt issuance increases Quanta’s interest obligations and leverage, which could weigh on the stock if borrowing costs remain high or the new capital does not generate sufficient returns. The impact is partly tempered by the company’s strong earnings outlook.

About Quanta Services

Quanta Services, Inc is a leading specialty contractor that provides comprehensive infrastructure solutions for the electric power, pipeline and energy, and communications markets. Headquartered in Houston, Texas, the company delivers engineering, procurement, construction, installation, maintenance and repair services that support the development, modernization and ongoing operation of critical energy and communications networks.

In the electric power sector, Quanta works on transmission and distribution systems, substation construction and grid modernization projects that include integration of renewable generation and energy storage.