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Top Construction & Engineering Stocks to Buy in 2019
Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Quanta Services (PWR-N) has consistently outperformed the S&P for the past 5 years, with a 14% compound annual revenue growth rate. The company operates in a decentralized manner, enabling them to benefit from scale when negotiating with suppliers and customers. Despite a temporary dip in share price, they reported a strong quarter and recovered most of the lost ground. Their engineering and construction businesses saw a significant uptick due to the Biden administration's infrastructure bill. The stock is currently trading at 25x 2024 PE, with experts feeling that the premium is justifiable due to the upcoming wave of infrastructure spending as rates decline.

Consensus
Positive
Valuation
Fair Value
Similar
EME, Emerson Electric Co
BUY
Quanta Services

It's beaten the S&P for 5 straight years. They're decentralized, operating in hundreds of smaller, regional contractors tailored to help customers in their areas. And yet they benefit from scale when negotiating with suppliers and customers. From 2010-2022, they earned a 14% compound annual revenue growth rate vs. 7% by the S&P. Consistent. Shares sank in September-October, but they reported a strong quarter and recovered nearly all that lost ground. From January to August their engineering and construction businesses soared on the back of Biden's infrastructure bill. Trades at 25x 2024 PE, not cheap, okay, but he feels the premium is worth paying for because a wave of infrastructure spending is coming as rates decline.

misc industrial products
SELL
Quanta Services
PWR vs. EME

He owns EME instead. On a 5-year chart, PWR has outperformed. But on a 1-year chart, EME is ahead. At 28x earnings, the multiple on PWR is about 50% higher than its normalized range, so it's not as good a value today. He'd switch into EME. EME has better profitability metrics, EPS revisions are better, PE is 20x earnings. 

misc industrial products
PAST TOP PICK
Quanta Services
(A Top Pick Jun 24/22, Up 39%)

Very good company that still owns shares in.
Engineering for power grids/electrical problems.
Service style business for EV space - provides infrastructure. 
Excellent fundamentals. 

misc industrial products
PAST TOP PICK
Quanta Services
(A Top Pick Mar 30/22, Up 23%)

Most boring tech on earth. Electrification of the world will be a big boost for it. Chart just goes up and to the right. Part of a theme of the onshoring of America. Likely to own for a while.

misc industrial products
PAST TOP PICK
Quanta Services
(A Top Pick Mar 30/22, Up 9%) He keeps adding it to his fund every month. Basic tech. Utility pole communications, solar panels, nothing too high flying. A vast percentage of the US solar panel business, so will benefit from Biden administration blocking imports. Another example of picks and shovels in tech.
misc industrial products
PAST TOP PICK
Quanta Services
(A Top Pick Mar 30/22, Up 2%) Backbone of telecommunication industry. Major supplier of hardware for communication business. Relative to other tech companies, company has done well the past year. Will continue to hold. Expecting large gains in the next few years.
misc industrial products
TOP PICK
Quanta Services
Believes power companies will benefit in the near, to long term. Charging stations for electric cars will be in high demand going forward. Owning companies that service electric vehicles is better than trying to pick particular car company.
misc industrial products
TOP PICK
Quanta Services
Nuts and bolts of hardening the electronic grid for EVs. Likes it because contracts are not long-term, so pricing power is built-in. For 5G and the like, these are the guys to hire. Will benefit from return to domestic production. Yield is 0.21%. (Analysts’ price target is $133.24)
misc industrial products
BUY
Quanta Services

PWR vs. MTZ MTZ does construction engineering services in the US. Rallied on the back of the infrastructure bill. He prefers Quanta Services, with its better quality management team, better track record, and lower risk areas of operation. PWR has better leverage to the bill and US growth. MTZ is not cheap, so probably won't be a takeover target.

misc industrial products
PAST TOP PICK
Quanta Services

(Top Pick Aug 31/16, Up 16.91%) He has been accumulating more of this. The management team has been pretty astute at picking away at assets. There is some growth as well as the dividend.

misc industrial products
PAST TOP PICK
Quanta Services

(A Top Pick July 15/14. Down 18.2%.) An energy services provider, the largest construction contractor for oil pipeline construction in North America, as well as the transmission distribution business. A phenomenal company. Management has done a great job. They continue to navigate this market and haven’t really lost any contracts. Valuation is very cheap at about 11X earnings. When energy prices recover, this company will have significant upside.

misc industrial products
PAST TOP PICK
Quanta Services

(Top Pick Jul 15/14, Down 25.89%) Not a lot of energy exposure. Two thirds of their business is electricity transmission in North America. Confident in the management team. Half of their oil and gas is long haul pipeline. He is a buyer here.

misc industrial products
TOP PICK
Quanta Services

A service provider that services 2 sectors, transmission/distribution and pipeline. Both segments have significant growth behind them. A cheaper way to play some of the pipeline companies in the US. Top-notch management team with a great track record of organic growth of 10% EPS. If they can do M&A, that would probably add another 2%-3% to that, so you are looking at a business that can give you 10%-15% return. With a flat multiple, this is worth north of $50.

misc industrial products
TOP PICK
Quanta Services

Largest contractor to gas and electric industries in the US. About 80% of their work is to electrical transmission utilities where spending is at a record level. Replacing old infrastructure and the utilities have the money to do this. That is going to continue, because two thirds of the infrastructure is near ending its useful life. On the pipeline side, they are a leader in pipeline building and have a record backlog. Stock is reasonably priced and she expects there is more growth.

misc industrial products
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Quanta Services(PWR-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 4

Stockchase rating for Quanta Services is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Quanta Services(PWR-N) Frequently Asked Questions

What is Quanta Services stock symbol?

Quanta Services is a American stock, trading under the symbol PWR-N on the New York Stock Exchange (PWR). It is usually referred to as NYSE:PWR or PWR-N

Is Quanta Services a buy or a sell?

In the last year, 4 stock analysts published opinions about PWR-N. 3 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Quanta Services.

Is Quanta Services a good investment or a top pick?

Quanta Services was recommended as a Top Pick by on . Read the latest stock experts ratings for Quanta Services.

Why is Quanta Services stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Quanta Services worth watching?

4 stock analysts on Stockchase covered Quanta Services In the last year. It is a trending stock that is worth watching.

What is Quanta Services stock price?

On 2024-02-29, Quanta Services (PWR-N) stock closed at a price of $241.51.