What Is Happening With Quanta Services Stock?
Quanta Services (PWR)’s stock surged 66%, fueled by solid revenue growth and a soaring P/E multiple, despite a small dip in margins. This leap reflects a powerful mix of earnings beats, robust future outlooks, analyst upgrades, and strategic demand—let’s unpack the momentum behind this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 2222025 | 11192025 | Change | |
|---|---|---|---|
| Stock Price ($) | 269.1 | 445.5 | 65.5% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 23,672.8 | 27,191.2 | 14.9% |
| Net Income Margin (%) | 3.8% | 3.7% | -2.0% |
| P/E Multiple | 44.0 | 65.2 | 48.4% |
| Shares Outstanding (Mil) | 147.8 | 149.0 | -0.8% |
| Cumulative Contribution | 65.5% |
So what is happening here? The stock price jumped 66%, driven by a 15% rise in revenue, a slight 2% dip in net margin, and a strong 48% boost in the P/E multiple. Let’s dig into the events behind these moves.
Here Is Why Quanta Services Stock Moved
- Q1 Earnings Beat/Guid: Reported EPS of $1.78 beat by $0.12, revenue of $6.23B beat, and full-year guidance raised.
- Q2 Earnings & Backlog: Beat Q2 EPS/revenue, announced record $35.8B backlog, and raised FY25 outlook.
- Q3 Earnings & Outlook: Q3 EPS of $3.33 beat by $0.09, revenue of $7.63B beat, and FY25 guidance updated.
- Analyst Upgrades/PTs: Multiple analysts raised price targets and maintained positive ratings on strong demand trends.
- Strategic Growth/Demand: Partnerships (AEP, NiSource) and acquisitions, driven by strong infrastructure demand.
Our Current Assesment Of PWR Stock
Opinion: We currently find PWR stock unattractive. Why so? Have a look at the full story. Read Buy or Sell PWR Stock to see what drives our current opinion.
Risk: A solid way to gauge risk is checking how much PWR sank in major market sell-offs. It fell over 83% in the Dot-Com crash and nearly 70% during the Global Financial Crisis. The 2018 correction saw a milder drop of about 30%, while Covid knocked it down 42%. Even the recent inflation shock pushed it down around 25%. So despite the stock’s strengths, big market shocks hit it hard every time. Quality stocks still move a lot when panic sets in.
PWR stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.