PWR Stock Forecast: Growth for Quanta Services, Inc. as Energy Demand Surges and Nationwide Infrastructure Upgrades Continue

Yu YaoThis PWR Stock Forecast article was written by Justin Cohen – Financial Analyst at I Know First


  • PWR Q1 2022FY Earnings Beat Expectations Again.
  • President Biden’s Infrastructure Spending is Set to Boost Growth.
  • Quanta Services is Adapting to Lead the Clean Energy Revolution.

Company Overview

Source: iStock

Founded in 1997 and based in Houston, TX, Quanta Services, Inc. (NYSE: PWR) is a leader in specialty contracting, offering comprehensive solutions in the utilities infrastructure industry. Utilizing a nationwide network of subsidiaries, Quanta has the capacity to carry out large scale projects throughout the United States. The company also operates in Canada and Australia.

President Biden and Unprecedented Infrastructure Investment

As the Biden administration pumps funding into extensive infrastructure projects across the country, companies with footprints as large as Quanta Services (PWR) can only expect earnings growth on a similar scale. With the help of Congress, the White House has been able to approve billions of dollars in funding for improving clean energy and telecommunications infrastructure.

More recently, on June 6th, President Biden signed into effect an executive order prioritizing domestic solar panel production growth through an emergency authorization. This was brought about while the United States faces energy supply challenges. And the administration looks to elevate and expand the domestic consumption of renewable energy as global demand for energy is projected to increase by over 45% by 2050. The executive order sets a goal to triple domestic solar panel production by 2024. The goal is ambitious, but if successful it would provide an increase in demand for Quanta’s offerings such as transmission and storage systems. Quanta Services’ competitors such as EMCOR Group (EME) and MasTec, Inc. (MTZ) will also stand to benefit from increased infrastructure development. However, Quanta’s nationwide coverage is a benefit that other firms do not possess.

Even before Biden’s executive orders and Congress’ infrastructure bills, state and local governments across the country have been contracting large firms such as Quanta to develop large scale transmission systems and Battery Energy Storage Systems (BESS) to satisfy the country’s growing implementation of renewables.

Clean Energy Pivot

Although the company has a sizable unit dedicated to constructing pipelines, Quanta possesses a diversified team of electric power, underground utility, and communications divisions. There is a lot of opportunity for Quanta, and they see that the future is in renewable energy such as wind and solar. In 2021, the company acquired Blattner Holding Company for $2.7 billion. Prior to the acquisition, Blattner was known for being a leader in renewable energy infrastructure solutions. Incorporating a firm like Blattner into Quanta’s holdings sets Quanta up for success in an industry that will be defined by companies that are able to adapt to the clean energy transition.

Other sectors that have been supported by the Biden administration have been the deployment of 5G nationwide and the continued upgrading of the power grid. Both of which Quanta plays an active role in.

Source: Yahoo Finance

For the past 4 quarters, PWR has consistently beat earnings estimates. And in Q2 2022 there is an enthusiastic earnings estimate. PWR has also been able to achieve a period of growth while the S&P 500, of which Quanta is a component, has been in decline. Quanta was able to make large gains that were unmatched by the index as a whole, which has given the stock a favorable position.

Source: Google Finance

Conclusion: Buy Quanta Services

Seen below is the forecast generated by our algorithm. The chart displays the 1-month, 3-month, and 1-year predictions for PWR’s performance. Given the exceedingly large budget for state and federal infrastructure projects, and a soon approaching clean energy boom it is safe to say that Quanta Services is a great stock to buy and hold. I have a bullish outlook for the performance of this stock as the services that Quanta provides are not affected by the potential recession that many in the market are starting to fear may become realized.

PWR Stock Forecast

Past Success with PWR Stock Forecast

PWR Stock Forecast

I Know First has been bullish on PWR in past forecasts. In our previous Top S&P 500 Stocks article, the I Know First algorithm from April 18, 2021 generated a bullish 1-year forecast. The algorithm correctly forecasted the movement of Quanta’s shares, which rose 45.15% over the 1-year period.

PWR Stock Forecast
I Know First Premium article

To subscribe today click here.

Please note-for trading decisions use the most recent forecast.