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Wall Street Turns More Bullish on PWR Stock: Buy, Hold or Sell Now?
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Key Takeaways
Quanta's Q2 revenues rose 41.1%, adjusted EPS climbed 71% and backlog hit a record $53.4 billion.
PWR's 2026 EPS estimate rose to $16.40 from $14.01, with projected earnings growth of 52.6%.
Quanta sees 220%-240% growth in technology and load centers, supporting its multi-year growth runway.
Wall Street is growing more confident in Quanta Services, Inc. (PWR - Free Report) following another strong quarterly performance and a meaningful improvement in its earnings outlook. Reflecting this momentum, earnings estimates for both 2026 and 2027 have moved sharply higher, suggesting increasing confidence in the company’s ability to sustain earnings growth.
Over the past two months, the Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased to $16.40 from $14.01, while the 2027 estimate has risen to $18.92 from $16.43, with no downward revisions. These estimates imply EPS growth of 52.6% in 2026 and 15.4% in 2027. Revenues are expected to grow 38.4% and 14.7%, respectively.
PWR EPS Estimate Revision Trend
Image Source: Zacks Investment Research
The optimism is also visible in brokerage ratings. PWR has an average brokerage recommendation of 1.30, with 23 of 27 firms carrying a Strong Buy recommendation. Wall Street’s average price target of $806.81 suggests 29.7% upside from the latest closing price. The question is whether Quanta’s operating momentum can justify its premium valuation after a 47.4% year-to-date rally.
Image Source: Zacks Investment Research
The company continues to benefit from rising investment in electric-grid infrastructure, power generation and large-load projects, while its expanding backlog provides solid visibility into future revenues. Strong execution, improving margins and recent acquisitions have also strengthened Quanta’s growth prospects.
Quanta’s Q2 Strength Supports the Bullish View
Quanta’s second-quarter results give analysts a solid reason to raise expectations. Revenues climbed 41.1% year over year to $9.56 billion, with organic growth of 27.4%. Adjusted EPS increased 71% to $4.24, adjusted EBITDA rose 59.5% to about $1.07 billion and free cash flow reached $886 million. Total backlog reached a record $53.4 billion, including $32.3 billion of 12-month backlog.
The strong first half, better visibility and acquisition contributions prompted management to lift its full-year outlook. Quanta now expects 2026 revenues of $39.3-$39.7 billion, adjusted EBITDA of $4.09-$4.21 billion and adjusted EPS of $16.45-$16.95. This higher outlook supports the recent upward trend in consensus estimates.
Grid, Data Centers and Power Demand Drive PWR’s Prospects
Quanta is positioned around several long-term infrastructure spending themes. Grid modernization, rising electricity demand, new power generation and large-load facilities are increasing the need for transmission, substations and interconnections.
Management expects the electric grid and gas utility market, which represented roughly half of 2025 revenues, to grow 20%-25% in 2026. Power generation and energy storage are expected to grow 10%-15%, while technology and load centers are expected to surge 220%-240%, supported by balance-of-plant demand and large multi-year build programs.
Quanta’s self-perform model adds another advantage. Management said that the company self-performs 80%-85% of its work, giving it greater control over schedules and execution. Larger utility, generation and technology programs also remain in their early stages, providing a multi-year growth runway.
Acquisitions and Financial Flexibility Add Support
Quanta is expanding its capabilities through acquisitions. Phalcon, Enerfab, Percheron and PSD deepen its electrical, mechanical, fabrication and front-end offerings while broadening exposure to utilities, data centers, power generation and industrial markets. The businesses are expected to contribute $1.2-$1.4 billion of 2026 revenues and $120-$140 million of adjusted EBITDA.
Financial flexibility remains healthy despite the deal activity. Quanta’s debt-to-EBITDA ratio improved to 1.72 at second-quarter end from 1.95 at 2025-end, while liquidity stood at roughly $2.8 billion. This should provide room for continued investment.
Premium Valuation and Execution Risks Cannot Be Ignored
Valuation is the main concern. PWR trades at 34.21X forward 12-month earnings, above the industry’s 24.89X and its five-year median of 28.20X. The premium is harder to ignore after Quanta’s 47.4% YTD gain compared with the industry’s 15.2% rise, the Zacks Construction sector’s 0.6% decline and the S&P 500’s 11.1% advance.
PWR Valuation vs Industry - P/E (F12M)
Image Source: Zacks Investment Research
PWR YTD Price Performance
Image Source: Zacks Investment Research
PWR is also below its 50-day moving average, although it remains above its 200-day average.
PWR Trades Below 50-Day, Above 200-Day SMAs
Image Source: Zacks Investment Research
Execution risks remain another watch point. Weather, permitting, regulation, supply-chain disruptions, trade policy and macroeconomic conditions can affect project timing, work mix and profitability. Larger projects also expose Quanta to labor availability, cost inflation and execution risk. With the stock already carrying a premium multiple, any slowdown could lead to sharper share-price volatility.
How Quanta Compares With Key Infrastructure Rivals
Quanta competes with MasTec (MTZ - Free Report) , MYR Group (MYRG - Free Report) and Primoris Services (PRIM - Free Report) across power delivery, utility construction, renewables and related infrastructure markets. Quanta’s 47.4% YTD gain is well ahead of MasTec’s 4.8% increase and MYR Group’s 24.4% rise, while Primoris Services has lost 40.2%.
PWR vs MTZ, MYRG, PRIM Price Performance (YTD)
Image Source: Zacks Investment Research
Quanta trades at 34.21X forward earnings compared with 19.27X for MasTec, 20.04X for MYR Group and 17.67X for Primoris Services. MasTec offers broad transmission, renewable and communications exposure, but MasTec trades at a sizable discount to Quanta. MYR Group remains closely tied to transmission, distribution and substation work, while MYR Group also offers a much lower valuation. Primoris Services has broad power and utility exposure, but Primoris Services’ weak stock performance signals greater market caution. Compared with MasTec, MYR Group and Primoris Services, Quanta commands a clear premium for its stronger growth and share-price momentum.
Buy, Hold or Sell PWR Stock Now?
The balance of factors remains favorable. Quanta has a record backlog, strong organic growth, rising earnings expectations and major opportunities tied to grid investment, power generation and data-center infrastructure. Its raised outlook and healthy cash generation further strengthen the case.
Valuation is the clearest reason for caution, particularly after the strong YTD rally. Still, the positive estimate revision trend, strong execution and bullish brokerage stance outweigh that concern for now. With PWR carrying a Zacks Rank #1 (Strong Buy), the stock currently looks more like a Buy than a Hold or Sell, particularly for investors comfortable paying a premium for above-industry growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Wall Street Turns More Bullish on PWR Stock: Buy, Hold or Sell Now?
Key Takeaways
Wall Street is growing more confident in Quanta Services, Inc. (PWR - Free Report) following another strong quarterly performance and a meaningful improvement in its earnings outlook. Reflecting this momentum, earnings estimates for both 2026 and 2027 have moved sharply higher, suggesting increasing confidence in the company’s ability to sustain earnings growth.
Over the past two months, the Zacks Consensus Estimate for 2026 earnings per share (EPS) has increased to $16.40 from $14.01, while the 2027 estimate has risen to $18.92 from $16.43, with no downward revisions. These estimates imply EPS growth of 52.6% in 2026 and 15.4% in 2027. Revenues are expected to grow 38.4% and 14.7%, respectively.
PWR EPS Estimate Revision Trend
Image Source: Zacks Investment Research
The optimism is also visible in brokerage ratings. PWR has an average brokerage recommendation of 1.30, with 23 of 27 firms carrying a Strong Buy recommendation. Wall Street’s average price target of $806.81 suggests 29.7% upside from the latest closing price. The question is whether Quanta’s operating momentum can justify its premium valuation after a 47.4% year-to-date rally.
Image Source: Zacks Investment Research
The company continues to benefit from rising investment in electric-grid infrastructure, power generation and large-load projects, while its expanding backlog provides solid visibility into future revenues. Strong execution, improving margins and recent acquisitions have also strengthened Quanta’s growth prospects.
Quanta’s Q2 Strength Supports the Bullish View
Quanta’s second-quarter results give analysts a solid reason to raise expectations. Revenues climbed 41.1% year over year to $9.56 billion, with organic growth of 27.4%. Adjusted EPS increased 71% to $4.24, adjusted EBITDA rose 59.5% to about $1.07 billion and free cash flow reached $886 million. Total backlog reached a record $53.4 billion, including $32.3 billion of 12-month backlog.
The strong first half, better visibility and acquisition contributions prompted management to lift its full-year outlook. Quanta now expects 2026 revenues of $39.3-$39.7 billion, adjusted EBITDA of $4.09-$4.21 billion and adjusted EPS of $16.45-$16.95. This higher outlook supports the recent upward trend in consensus estimates.
Grid, Data Centers and Power Demand Drive PWR’s Prospects
Quanta is positioned around several long-term infrastructure spending themes. Grid modernization, rising electricity demand, new power generation and large-load facilities are increasing the need for transmission, substations and interconnections.
Management expects the electric grid and gas utility market, which represented roughly half of 2025 revenues, to grow 20%-25% in 2026. Power generation and energy storage are expected to grow 10%-15%, while technology and load centers are expected to surge 220%-240%, supported by balance-of-plant demand and large multi-year build programs.
Quanta’s self-perform model adds another advantage. Management said that the company self-performs 80%-85% of its work, giving it greater control over schedules and execution. Larger utility, generation and technology programs also remain in their early stages, providing a multi-year growth runway.
Acquisitions and Financial Flexibility Add Support
Quanta is expanding its capabilities through acquisitions. Phalcon, Enerfab, Percheron and PSD deepen its electrical, mechanical, fabrication and front-end offerings while broadening exposure to utilities, data centers, power generation and industrial markets. The businesses are expected to contribute $1.2-$1.4 billion of 2026 revenues and $120-$140 million of adjusted EBITDA.
Financial flexibility remains healthy despite the deal activity. Quanta’s debt-to-EBITDA ratio improved to 1.72 at second-quarter end from 1.95 at 2025-end, while liquidity stood at roughly $2.8 billion. This should provide room for continued investment.
Premium Valuation and Execution Risks Cannot Be Ignored
Valuation is the main concern. PWR trades at 34.21X forward 12-month earnings, above the industry’s 24.89X and its five-year median of 28.20X. The premium is harder to ignore after Quanta’s 47.4% YTD gain compared with the industry’s 15.2% rise, the Zacks Construction sector’s 0.6% decline and the S&P 500’s 11.1% advance.
PWR Valuation vs Industry - P/E (F12M)
Image Source: Zacks Investment Research
PWR YTD Price Performance
Image Source: Zacks Investment Research
PWR is also below its 50-day moving average, although it remains above its 200-day average.
PWR Trades Below 50-Day, Above 200-Day SMAs
Image Source: Zacks Investment Research
Execution risks remain another watch point. Weather, permitting, regulation, supply-chain disruptions, trade policy and macroeconomic conditions can affect project timing, work mix and profitability. Larger projects also expose Quanta to labor availability, cost inflation and execution risk. With the stock already carrying a premium multiple, any slowdown could lead to sharper share-price volatility.
How Quanta Compares With Key Infrastructure Rivals
Quanta competes with MasTec (MTZ - Free Report) , MYR Group (MYRG - Free Report) and Primoris Services (PRIM - Free Report) across power delivery, utility construction, renewables and related infrastructure markets. Quanta’s 47.4% YTD gain is well ahead of MasTec’s 4.8% increase and MYR Group’s 24.4% rise, while Primoris Services has lost 40.2%.
PWR vs MTZ, MYRG, PRIM Price Performance (YTD)
Image Source: Zacks Investment Research
Quanta trades at 34.21X forward earnings compared with 19.27X for MasTec, 20.04X for MYR Group and 17.67X for Primoris Services. MasTec offers broad transmission, renewable and communications exposure, but MasTec trades at a sizable discount to Quanta. MYR Group remains closely tied to transmission, distribution and substation work, while MYR Group also offers a much lower valuation. Primoris Services has broad power and utility exposure, but Primoris Services’ weak stock performance signals greater market caution. Compared with MasTec, MYR Group and Primoris Services, Quanta commands a clear premium for its stronger growth and share-price momentum.
Buy, Hold or Sell PWR Stock Now?
The balance of factors remains favorable. Quanta has a record backlog, strong organic growth, rising earnings expectations and major opportunities tied to grid investment, power generation and data-center infrastructure. Its raised outlook and healthy cash generation further strengthen the case.
Valuation is the clearest reason for caution, particularly after the strong YTD rally. Still, the positive estimate revision trend, strong execution and bullish brokerage stance outweigh that concern for now. With PWR carrying a Zacks Rank #1 (Strong Buy), the stock currently looks more like a Buy than a Hold or Sell, particularly for investors comfortable paying a premium for above-industry growth. You can see the complete list of today’s Zacks #1 Rank stocks here.