Stock Price & Analysis

Based on the provided data and recent market activity, here's a comprehensive analysis for PWR stock:

Technical Analysis

The stock is showing significant weakness with RSI-14 at 30.63 and currently in oversold territory. The MACD indicator (-11.17) with a negative histogram (-2.71) suggests strong downward momentum. The stock is trading below all major moving averages (5-day: $283.13, 10-day: $293.05, 20-day: $300.06), indicating a clear downtrend.

Fundamental Strength

The company has demonstrated solid financial performance:

• Revenue grew from $17.07B (2022) to $20.88B (2023), showing 22.3% growth
• Net income increased from $491.2M to $744.7M, representing 51.6% growth
• ROE improved from 9.36% to 12.78%, indicating better operational efficiency

Recent Analyst Coverage

Several prominent analysts have recently initiated or reiterated coverage:

• Goldman Sachs: Buy rating with $418 price target
• Evercore ISI: Buy rating with $331 price target
• Roth MKM: Buy rating with $350 price target

The average analyst price target stands at $355.20, suggesting a 31.87% upside potential from current levels.

Key Growth Catalyst

Roth MKM specifically highlights PWR's positioning in AI infrastructure: "Power is the key bottleneck for the AI/datacenter theme, and PWR is one of the best-positioned companies to support the acceleration of the electrical infrastructure build-out with its leading market share in electric utility and renewables."

Valuation Metrics

Current P/E ratio of 44.67 is relatively high but justified given the company's strong growth prospects and strategic position in AI infrastructure development.

Recommendation

SELL for short-term traders due to current technical weakness, but BUY for long-term investors looking to accumulate on this dip. The stock is technically oversold while fundamentals remain strong, and multiple analysts see significant upside potential.

Based on the provided data and recent market analysis, here's the price prediction for PWR stock in 2025:

PWR is expected to reach $352-$355 by end of 2025, representing a potential upside of about 30% from current levels. The projection is supported by several key factors:

1. Strong Infrastructure Demand: According to recent analyst reports, PWR continues to benefit from surging demand for energy infrastructure and grid modernization, supported by federal policies and renewable energy mandates. The company's strategic acquisition of Cupertino Electric has strengthened its position in the data center and renewable energy sectors.

2. Earnings Growth: Analysts forecast Q4 2024 EPS of $2.64, showing a 29.41% growth year-over-year. This strong earnings momentum is expected to continue through 2025 driven by infrastructure spending.

3. Technical Support: The stock has shown strong support around the $270 level, with Fibonacci support levels at $273.70 and $261.30. The upside targets align with Fibonacci resistance levels at $313.85 and $326.25.

The primary catalyst for this price target is the expected increase in power infrastructure spending, as EIA forecasts higher wholesale power prices across most U.S. regions in 2025, which should drive demand for PWR's services.

The S1 support level for PWR Stock is $258.18 ,The R1 resistant level for PWR Stock is $300.94.

As of the end of day on 2025-02-27, the price of PWR Stock was $260.

The target price for PWR Stock according to analyst rating is 352.58, with the highest price target at 398.00 and the lowest at 321.00. Analysts have a Moderate Buy rating on PWR Stock overall.

The market cap of PWR is $38.4B.

Based on the comprehensive data analysis, PWR appears to be overvalued at current levels. Here's why:

Valuation Metrics PWR's forward P/E ratio of 43.13 is significantly higher than the industry average of 20.11, indicating a premium valuation. The EV/EBITDA of 19.47 also suggests rich valuation levels.

Technical Analysis The stock is showing bearish signals with RSI at 30.63 in oversold territory. The stock is trading below all key moving averages (SMA 5, 10, 20), suggesting downward momentum. The MACD is negative at -11.17 with a bearish crossover.

Recent Performance & Catalysts The stock has declined significantly from its recent highs, with analysts expressing concerns about:

• Potential headwinds in the renewables sector which accounts for over 35% of EBITDA
• High valuation multiples that may not be sustainable
• Declining demand in Underground Utility segment

Analyst Sentiment While several analysts maintain buy ratings, there are increasing concerns about valuation:

• BMO Capital initiated with Hold rating citing valuation concerns
• KeyBanc maintained Hold rating despite positive industry outlook
• Price targets range from $331 to $418, suggesting limited upside from current levels

Conclusion PWR appears overvalued based on:

1. Premium valuation metrics compared to peers
2. Technical indicators showing bearish momentum
3. Growing concerns about sector-specific headwinds
4. Declining demand in key business segments
5. Analyst caution on valuation levels

Quanta Services, Inc. is a provider of comprehensive infrastructure solutions for the electric and gas utility, renewable energy, communications, pipeline, and energy industries. The Company operates through three segments: Electric Power Infrastructure Solutions (Electric Power), Renewable Energy Infrastructure Solutions (Renewable Energy) and Underground Utility and Infrastructure Solutions (Underground and Infrastructure). Electric Power segment provides comprehensive services primarily for the electric power and also for the communications market. Its services include design, procurement, new construction, upgrade and repair and maintenance services. Renewable Energy segment includes engineering, procurement, new construction, repowering and repair and maintenance services. Underground and Infrastructure segment provides infrastructure solutions to customers involved in the transportation, distribution, storage, development and processing of natural gas, oil, and other products.

Based on the available data and analyst forecasts, here's a price prediction analysis for Quanta Services (PWR) stock by 2030:

Key Growth Drivers:

• Strong positioning in AI infrastructure and data center power solutions
• Leading market share in electric utility and renewables sector
• Increasing demand for energy infrastructure and grid modernization
• Strategic acquisitions enhancing presence in renewable energy sector

Analyst Price Targets (2025):

• Goldman Sachs: $418.00
• Evercore ISI: $331.00
• Roth MKM: $350.00
• Average consensus: $355.20

2030 Price Projection: $850-900

Reasoning:

• Current P/E ratio of 44.67 indicates strong growth expectations
• EIA forecasts continued rise in power demand from AI data centers and electrification
• Company's strategic position in critical infrastructure segments suggests sustained long-term growth
• Based on projected earnings growth and market expansion in renewable energy and AI infrastructure sectors

PWR has a total of 52500 employees.