Quanta Services (PWR) Set for 2026 Recovery as Bernstein Forecasts Policy-Driven Reversal of Cyclical Downturn

Quanta Services Inc. (NYSE:PWR) is one of the best stocks for the next decade. On December 19, Bernstein lowered the firm’s price target on Quanta Services to $428 from $432, while maintaining a Market Perform rating on the shares. This sentiment was posted as Bernstein provided a more optimistic outlook for 2026 and framed it as a recovery year following a difficult 2025.

The firm noted that 2025 was marked by a typical cyclical downturn in core end markets, but 2026 will see a reversal of this trend as monetary and fiscal policies align to stimulate growth. This shift is expected to trigger positive earnings revisions, with a projected low-to-mid single-digit upside to current expectations.

Earlier on December 8, JPMorgan analyst Mark Strouse upgraded Quanta Services to Overweight from Neutral with a price target of $515, which was increased from $457. In its 2026 outlook for the clean energy sector, JPMorgan updated its ratings with a focus on market consolidation and regulatory shifts. The firm predicts that utility-scale renewables will continue to outperform, though the industry is moving toward larger projects.

This complexity is expected to drive a wave of consolidation between upstream suppliers and downstream developers. Consequently, Strouse favors companies characterized by robust balance sheets, diversified market exposure, and a significant manufacturing footprint within the US.

Quanta Services Inc. (NYSE:PWR) offers infrastructure solutions for the electric & gas utility, renewable energy, communications, pipeline, and energy industries in the US, Canada, Australia, and internationally.

While we acknowledge the potential of PWR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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