PWR Stock Analysis — Quanta Services
Sector: Industrials
AI Verdict
PWR is cheap for the growth you're getting if it delivers on 64.3% EPS growth, but at 42.2x forward earnings, any stumble could trigger a sharp valuation reset despite the current oversold RSI.
Competitive Moat
Quanta Services builds and maintains critical infrastructure for electric power, pipeline, and telecom networks, locking in long-term utility and energy customers with multi-year contracts. Its scale and expertise in grid modernization and renewable integration create high switching costs for utilities facing regulatory and technical hurdles.
Summary
A 32.1 RSI signals PWR is oversold despite a 59.76% gain over the past year.
Where It Stands
PWR trades at 42.2x next year's earnings, well above the industrials sector median of 20x, but its 64.3% forward EPS growth and 32.1 RSI suggest a rare combination of high growth expectations and technical oversold conditions.
Key Metrics
- RSI: 32.1 — Near Oversold
- Trailing P/E: 69.3x
- Forward P/E: 42.2x
- PEG Ratio: 1.05
- Earnings Growth: +0.6%
- Revenue Growth: +0.3%
- Market Cap: $89.0B
- Dividend Yield: 0.00%
- 1-Year Return: 59.76%
- 5-Year Return: 496%
- 52-Week High: $788.75
- 52-Week Low: $363.01
Analyst Consensus
26 Buy · 10 Hold · 0 Sell (36 analysts)
Bull Case
Analysts expect 64.3% EPS growth next year, making the 42.2x forward P/E cheap for the growth on offer if Quanta's utility contracts keep expanding.
Bear Case
If the P/E multiple compresses to the sector median of 20x, the stock could lose over 50% from current levels even if earnings grow as forecast.
Catalyst to Watch
Watch for major utility contract wins or regulatory shifts in grid spending, as these could validate or undermine the 64.3% EPS growth outlook.