Quanta Services Is Outperforming On Strong Renewable Demand. Room For Further Gains?

Quanta Services Is Outperforming On Strong Renewable Demand. Room For Further Gains?

Quanta Services (NYSE: PWR), a provider of infrastructure services for electric, oil, gas, and telecom companies has seen its stock gain almost 12% over the last month, compared to the S&P 500 which is up by about 1. 5% over the same period. The stock also remains up by about 6% over the last week (five trading days). There are a couple of factors driving the recent gains. Firstly, Quanta recently just published a stronger than expected set of Q4 results, with revenue rising almost 35% year-over-year to $3. 92 billion and adjusted EPS rising 26% year-over-year to $1. 54. The growth was driven by surging demand from the renewable energy infrastructure space and higher capital spending by utility companies on grid modernization following Covid-19 and major power blackouts in the United States over the last year. Moreover, real-economy stocks and relative value picks such as Quanta have benefited as investors reduce exposure to technology and high-multiple stocks, amid rising bond yields. Chance of Rise While PWR stock may see higher levels in the near term, based on our Trefis Machine Learning Engine, several peers in its sector look like a better bet than Quanta Services. Check out how Quanta