Quanta Services (PWR-N)

She trimmed GE Vernoa to buy more Eaton and Quanta Services, and both just reported blow-out quarters. Quanta: EBITDA +40%, backlog +14%. Eaton: data centres +45%, pipeline +65%, and backlog 3x more than normal. Good valuations.

Great company. Would recommend buying. 

Are exposed to consumer and electrical spending in utilities. They have strong pricing power

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.

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. 

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

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.

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.

(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.

(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.

(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.