For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Quanta Services (PWR) ten years ago? It may not have been easy to hold on to PWR for all that time, but if you did, how much would your investment be worth today?
Quanta Services' Business In-Depth
With that in mind, let's take a look at Quanta Services' main business drivers.
Quanta Services, Inc. is a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Quanta has operations in the United States, Canada, Australia and other selected international markets.
Starting from the first quarter of 2025, Quanta reports results under two reportable segments: Electric Infrastructure Solutions and Underground Utility and Infrastructure Solutions. The move highlights efficient allocation of resources and better management of the strategies and comprehensive solutions for its growing and increasingly converging addressable markets.
Electric Infrastructure Solutions segment (accounting for 79.3% of first-quarter 2025 revenues): This segment is the amalgamation of the previously reported Electric Power Infrastructure Solutions and the Renewable Energy Infrastructure Solutions segments. This new segment indulges in comprehensive services for the electric power, renewable energy, technology and communications markets. A few of its core services include the design, procurement, new construction, upgrade and repair and maintenance services for electric power transmission and distribution infrastructure; solar and hydropower generation facilities and battery storage facilities; and installation of “smart grid” technologies on electric power networks.
Underground Utility and Infrastructure Solutions segment (20.7%): This segment provides solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services include design, installation, repair and maintenance of oil and gas transmission and distribution systems, and related trenching and directional boring services. Also, this segment provides pipeline protection services, high-pressure and critical-path turnaround services to the downstream and midstream energy markets.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Quanta Services, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2015 would be worth $11,317.74, or a 1,031.77% gain, as of May 22, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 174.29% and gold's return of 164.34% over the same time frame.
Going forward, analysts are expecting more upside for PWR.
Quanta’s first quarter of 2025 adjusted earnings and revenues topped the Zacks Consensus Estimate by 7.2% and 6.1%, respectively. Both metrics grew year over year as well by 26.2% and 23.9%, thanks to improved profitability across both the reportable segments. Its resilient business model and its ability to deliver consistent, profitable growth in varying market conditions aided its quarterly performance. Moreover, the accretive buyouts, the recent segment restructuring and its focus on shareholder value reflect its balanced capital allocation approach. Owing to these tailwinds, Quanta laid out an upbeat 2025 outlook across key metrics. Quanta’s shares have outperformed the industry in the past year. However, its prospects are susceptible to supply-chain inefficiencies, macro headwinds, ongoing inflationary pressures and seasonality.
Over the past four weeks, shares have rallied 24.40%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Quanta Services, Inc. (PWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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