Back to top

Analyst Blog

Par Electrical Contractors, Inc. (PAR), a subsidiary of Quanta Services Company (PWR - Analyst Report), was awarded a contract by PPL Electric Utilities to deploy transmission infrastructure for the Northeast Pocono Reliability Project. Although no financial details were disclosed, Par Electrical has started working on the contract and expects to complete the project by May 2017.

The scope of contract requires PAR to install about 68 miles of 230-kilovolt and 138-kilovolt overhead transmission lines, erect steel transmission structures, install concrete foundations and construct and maintain access roads. The contract is likely to be included in Quanta’s Electric Power Infrastructure Services segment which contributed 68.7% of the total revenue in 2013. This segment provides comprehensive network solutions to customers in the electric power industry.

Notably, Quanta Services is benefiting from increased spending in the Electric Power segment. The higher spending is directed toward project upgrades and deployment of electric power transmission infrastructure to improve system reliability and deliver renewable electricity from new sources to demand centers. The company is also seeing profits from aging electric infrastructure that requires increased maintenance spending to meet reliability standards. Also, the rapid adaptation of smart grid technology is expected to leverage the segment’s business going forward. In the last reported first-quarter of 2014, revenues at the segment surged 8.5% driven by continued increase in demand for electric transmission and distribution services.

Quanta currently holds a Zacks Rank #2 (Buy). Some better-ranked stocks in the sector include Emcor Group Inc. (EME - Analyst Report), Sterling Construction Co. Inc. (STRL - Snapshot Report) and Tutor Perini Corporation (TPC - Snapshot Report). All three carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%