For Immediate Release

Chicago, IL – June 12, 2026 – Zacks Equity Research shares Quanta Services, Inc. (PWR Quick QuotePWR - Free Report) as the Bull of the Day and lululemon athletica inc. (LULU Quick QuoteLULU - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Plug Power Inc. (PLUG Quick QuotePLUG - Free Report) , FuelCell Energy, Inc. (FCEL Quick QuoteFCEL - Free Report) and Flux Power Holdings, Inc. (FLUX Quick QuoteFLUX - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

Quanta Services, Inc. is an energy infrastructure powerhouse that's transformed into one of the biggest winners in the largest capex spending spree in generations.

PWR more than doubled its revenue and its GAAP (and adjusted) earnings per share between 2021 and 2025 as it physically builds and maintains the AI energy boom, the electrification push, grid expansion and hardening, and more.

The energy infrastructure standout is projected to follow up its blockbuster earnings and sales expansion with double-digit growth in 2026 and 2027. Quanta Services closed the first quarter of 2026 with a record backlog of $48.5 billion.

Quanta said last quarter that it's on a "clear path to more than doubling" its adjusted EPS by 2030 vs. its 2025 levels. It is grabbing a larger share of what it views as a total addressable market worth $2.4 trillion through 2030, given its "unique positioning at the center of converging utility, generation and large-load markets."

PWR is also starting to churn out solid free cash flow growth, and its sturdy balance sheet helped it announce a new $1 billion repurchase program in late May.

The AI energy stock's upward earnings revisions land it a Zacks Rank #1 (Strong Buy). PWR shares have already soared ~88% in the past year as part of a much larger run in the past five years.

Some investors might be nervous about chasing soaring AI-boosted stocks. But calling a near-term top is a dangerous game (since it can leave you missing out on rally after rally). And PWR is already down ~15% from its recent highs, and the stock is landing support near some key technical levels.

More importantly for long-term investors, Quanta stands to be a huge winner across converging megatrends, and it allows you to play the AI boom without picking the tech winners.

PWR: One of the Best Stocks to Buy and Hold for the Next Decade

Quanta, founded in 1997, is a pure-play energy and utility infrastructure company benefiting from the AI data center-driven energy boom, the electrification push, power and grid expansion, reshoring, and beyond.

The Houston, Texas-based firm stands to grow alongside a potentially once-in-a-lifetime spending spree that will be measured in decades and trillions of dollars.

PWR already has the growth receipts to prove it's one of the giants of the AI-boosted energy and electricity infrastructure boom.

Quanta more than doubled its revenue and its GAAP (and adjusted) earnings per share between 2021 and 2025 as it physically builds and maintains the infrastructure required for the U.S. to remain a thriving growth economy for the rest of the 21st century.

PWR produced record revenues eight of the last nine years, while expanding at a 14% compound annual growth rate (CAGR) between 2015 and 2025. It also delivered eight straight years of record adjusted EBITDA and nine consecutive years of record adjusted EPS, marking a 25% CAGR since 2015.

The company grew its revenue and its adjusted earnings by ~20% in 2025. It closed the first quarter of 2026 with a record backlog of $48.5 billion and grew its free cash flow by 55% in Q1 to $184 million.

Quanta's management confirmed that it's on a "clear path to more than doubling" its adjusted EPS by 2030 vs. its 2025 levels as it attempts to capture more of what it sees as a total addressable market of $2.4 trillion through 2030.

CEO Duke Austin said in Q1 remarks that its "compounding model" and its "unique positioning at the center of converging utility, generation and large-load markets" cement its growth outlook.

PWR is projected to grow its revenue by 22% in 2026 and another 13% next year to $38.95 billion—adding over $10 billion to the top-line vs. 2025.

Meanwhile, it is projected to boost its adjusted EPS by 30% in 2026 and 18% next year to reach $16.38 a share as it pushes to double its earnings between 2025 and 2030. And its upward earnings revisions land Quanta a Zacks Rank #1 (Strong Buy).

Quanta Stock is a Bet on AI and U.S. Economic Growth

Quanta is playing a key role as the U.S. economy and Wall Street enter a new age of capital-intensive growth after a roughly 20-year run of capital-light economic and stock market expansion.

Globally, companies are projected to spend $7 trillion on capex for AI data center infrastructure by 2030, according to McKinsey, with $1.3 trillion of this spending dedicated to the broader energy segment. A total of 40% of all this spending is set to happen in the U.S., and that's just over the next five years.

AI hyperscalers are spending hundreds of billions of dollars a year (on the path towards trillions) on their AI expansion efforts, showcasing tangible progress rather quickly. The AI hyperscalers, such as Meta and Microsoft, are having a much harder time securing the long-term energy deals required to power their AI visions.

Large AI data centers consume as much electricity as mid-sized cities. This backdrop has sparked an overnight race to bring more power online. U.S. electricity generation remained roughly flat at around 4,000-4,400 (TWh) terawatt-hours between the mid-2000s and early 2020s.

The U.S. electricity grid was already in desperate need of investment and expansion before the AI boom. Now, the AI arms race, coupled with an electrification push and the reshoring of critical manufacturing, such as semiconductors, are projected to boost U.S. electricity demand 25% by 2030 and 75% to 100% by 2050. U.S. transmission capacity must double to keep up with this projected growth.

The next 10 years alone are projected to require more new electricity generation than any period in U.S. history. This backdrop is why the U.S. government is attempting to help quadruple nuclear power capacity by 2050, as Meta, Microsoft and other tech giants partner with next-gen nuclear energy upstarts.

Natural gas is also experiencing a boom as AI companies race to add more of the most stable power sources as quickly as possible. Solar, battery storage, wind, and beyond are also growing as part of an all-of-the-above approach to energy generation growth.

Quanta has cemented its position as one of the clear winners of what's shaping up to be a multi-decade spending spree across all the areas of the economy we just discussed.

Buy this Top-Ranked Stock Now, or Wait for a Pullback?

Quanta stock has skyrocketed over the past 15 years, including a ~640% charge in the past five years, crushing its industry, sector, the S&P 500, and both Meta and Microsoft (two AI hyperscalers) during both periods.

PWR has surged 60% YTD, and some investors might be hesitant to chase the stock and other soaring AI stocks. There is no doubt the market is due for a cooldown after the huge rally off the late-March lows.

Thankfully, PWR and the Nasdaq have already cooled off a bit following the recent selloff.

PWR dropped ~15% from its early May peaks. And it landed support near its 50-day moving average and its highs from before it gapped up at the end of April.

The recent drop also took Quanta from its most overbought RSI levels in the past five years to some of its most oversold.

Of course, selling could ramp back up in the near-term if things go wrong with Iran.

But market timing is exceedingly difficult. Investors might consider taking a starter position in Quanta, and then buy more shares after its next leg down—whenever that occurs.

Bear of the Day:

Fashion is fickle, just ask former Wall Street darling lululemon athletica inc.. The athleisure power, which changed fashion for a period of time, is facing changing trends, increased competition, and other headwinds.

Lululemon's earnings revisions went into a downward spiral starting in late 2024. Its earnings outlook took another turn for the worse after it reported its Q1 FY26 results on June 4.

LULU's most recent downward earnings revisions earn the athletic apparel maker a Zacks Rank #5 (Strong Sell). The stock has also tanked 50% in the last year.

Should Investors Stay Away from LULU Stock Right Now?

Lululemon is finally facing slowing growth in the U.S. and North America after a banner stretch of expansion that saw it average 23% revenue growth between 2018 and 2023. The rapid expansion of rivals Alo, Vuori, and countless other online-only startups is also contributing to LULU's slowing comparable store sales in its critical Americas region.

On top of that, broader fashion trends appear to be moving away from Lululemon's core offerings. Even though LULU has actively expanded its business in an effort to adapt, Wall Street is unconvinced it is ready to turn things around.

LULU grew its FY25 revenue by 5%, marking by far its lowest ever YoY sales expansion as a public company. Before that, 2024's 10% revenue growth was its slowest year of growth.

The company's Americas comparable sales decreased 3% in fiscal 2025. Lululemon followed up that rough performance in its most important market with a 5% YoY decline in Americas comps in the first quarter of FY26.

The company's Q2 earnings estimate dropped roughly 27% since its report on June 4, with its FY26 estimate another 8% lower and FY27's 9% off the pace. The recent downward revisions earn Lululemon a Zacks Rank #5 (Strong Sell), and extend its downward earnings spiral.

Lululemon is projected to grow its revenue by around 0.5% in FY26 and nearly 5% next year. Meanwhile, its adjusted earnings are expected to fall 14% YoY in FY26 and then jump 8% next year, based on current Zacks estimates.

LULU's 40% YTD dive is part of a ~75% drop from its early 2024 peaks. The fall has it trading where it was in various parts of 2018 and at its lowest ever forward earnings multiple at 9.4X forward 12-month EPS. This backdrop means that investors should likely keep Lululemon on their watchlists and possibly take a nibble at it when management shows Wall Street that a turnaround is on the horizon.

Until then, investors should likely look elsewhere for stocks to buy across the apparel industry and beyond.

Additional content:

Plug Power Surges +120% in a Year: Should You Buy the Stock or Wait?

Plug Power Inc. shares have surged 120% in the past year, outpacing the industry and the S&P 500, which have returned 74.8% and 25.9%, respectively. In comparison, the company's peers like FuelCell Energy, Inc. and Flux Power Holdings, Inc. have gained 156.5% and declined 41.6%, respectively, over the same time frame.

Closing at $2.86 in the last trading session, the stock is trading below its 52-week high of $4.58 but significantly higher than its 52-week low of $1.03. PLUG is currently trading below its 50-day moving average but above its 200-day moving average, indicating a volatile trend in the share price.

Factors Favoring Plug Power

Plug Power's results continue to show signs of improvement in the first quarter of 2026. After witnessing growth of 12.9% in 2025, PLUG's revenues increased 22% year over year in the quarter. Revenues were driven by impressive demand for its electrolyzer product line and volume increase in hydrogen fuel sales. In the first quarter, revenues from the electrolyzer product line skyrocketed approximately 345% on a year-over-year basis.

This solid growth was supported by the growing popularity of the company's GenEco proton exchange membrane (PEM) electrolyzers across the industrial and energy sectors. The company has more than 320 MW of electrolyzer capacity deployed worldwide and more than $8 billion in project pipeline across industrial and energy applications. With strong expertise in providing and installing electrolyzers, Plug Power is well-positioned to capitalize on the increasing demand for renewable fuels and green ammonia globally.

Last month, PLUG secured a contract for supplying 30 MW of GenEco PEM electrolyzers for the industrial hydrogen production plant located in Barrow-in-Furness, Cumbria. The project will deploy PLUG's six 5 MW GenEco PEM electrolyzers for the production of green hydrogen.
Also, in April, Plug Power clinched one of the largest electrolyzer project deals in its history. The company received the Front-End Engineering Design (FEED) contract from Hy2gen Canada to deliver a 275 MW GenEco PEM electrolyzer system for the latter's "Courant" decarbonized ammonium nitrate project.

PLUG's Project Quantum Leap is also enabling it to boost its cash flow and reduce the cash burn rate. As part of the project, it is benefiting from sales growth, pricing actions, inventory and capex management, and increased leverage of its hydrogen production platform.

Near-Term Concerns Prevail

The major issue plaguing Plug Power is its inability to generate positive gross margins and cash inflows. It recorded a gross margin of negative 13% in first-quarter 2026. Meanwhile, its operating cash outflow totaled $150 million in the first quarter.

Also, PLUG's weak liquidity position remains a concern. Exiting first-quarter 2026, its cash equivalents totaled $223.2 million, reflecting a decrease of 39% from 2025-end. PLUG also operates in the highly competitive green hydrogen and fuel cell markets, which include major industry players like FuelCell Energy and Flux Power.

PLUG's Estimate Revisions

The Zacks Consensus Estimate for PLUG's 2026 bottom line has decreased in the past 60 days. However, the figure indicates year-over-year growth of 76.8%. In the same period, the consensus mark for the 2027 bottom line has increased, reflecting year-over-year growth of 52.3%.

Valuation

From a valuation standpoint, Plug Power is trading at a trailing price-to-earnings ratio of a negative 6.81X against the industry average of 0.01X. In comparison, FuelCell Energy and Flux Power are trading at (3.96X) and (3.76X), respectively.

Final Take

PLUG's growing footprint in the green hydrogen market, solid pipeline of projects, strong product portfolio and partnerships are likely to drive its long-term performance. Nevertheless, the ongoing challenges, including negative gross margins and cash outflows, are likely to continue impacting this Zacks Rank #3 (Hold) company's near-term performance.

While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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