Quanta Services, Inc. (PWR) Can Benefit From US Manufacturing Reshoring, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Warned About Samsung’s Phones. Quanta Services, Inc. (NYSE:PWR) is one of the stocks Jim Cramer recently discussed.

Quanta Services, Inc. (NYSE:PWR)’s shares have gained 22% year-to-date to make them the best-performing stock among its mega construction and engineering services peers. Quanta Services, Inc. (NYSE:PWR) reported a strong set of earnings results in July when it raised its annual revenue guidance to $27.4 billion and $27.9 billion from an earlier $26.7 billion to $27.2 billion and its earnings per share guidance to $10.28 and $10.88 from an earlier $10.05 and $10.65. Naturally, Cramer also believes that Quanta Services, Inc. (NYSE:PWR) can be a winner from growing construction activity due to American manufacturing being on-shored:

“. . .people are looking for ways to be able to play the reshoring. The best ways are Aecom and then the letter J, Jacobs. Those are the two that are getting the contracts. Don’t do Fluor’s, Fluor’s had a series of missed quarters, that one is not on my screen. But Aecom and Jacobs go, PWR too, Quanta, but I don’t think that’s as good.”

Here’s what Quanta Services, Inc. (NYSE:PWR)’s management said during the firm’s first quarter earnings call about catalysts from manufacturing:

“Utilities across the United States are experiencing and forecasting meaningful increases in power demand, which is being driven by the adoption of new technologies and related infrastructure, including data centers and artificial intelligence, policies intended to reinforce domestic manufacturing and supply chain resources and the need for all forms of energy generation. We continue to believe these drivers are leading to a potential historic investment in and an expansion of high-voltage transmission infrastructure. And at Quanta’s self-performed platform, execution track record and solution-based mindset enabled us to capitalize on these expanding opportunities, positioning Quanta for sustained leadership and long-term growth.”

While we acknowledge the potential of PWR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.