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Carderock Capital Management Inc. trimmed its stake in shares of Quanta Services, Inc. (NYSE: PWR) by 10.7% in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 17,526 shares of the construction company's stock after selling 2,095 shares during the quarter.

Quanta Services (PWR - Free Report) closed at $546.43 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily loss of 0.52%. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.

Prior to today's trading, shares of the specialty contractor for utility and energy companies had lost 14.15% lagged the Construction sector's loss of 6.53% and the S&P 500's loss of 1.21%.

The upcoming earnings release of Quanta Services will be of great interest to investors. The company's earnings report is expected on October 29, 2026. In that report, analysts expect Quanta Services to post earnings of $5.01 per share. This would mark year-over-year growth of 50.45%. At the same time, our most recent consensus estimate is projecting a revenue of $10.99 billion, reflecting a 43.95% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.7 per share and revenue of $39.41 billion. These totals would mark changes of +55.35% and +38.37%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.24% higher. Quanta Services presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Quanta Services is currently being traded at a Forward P/E ratio of 33.09. This signifies a premium in comparison to the average Forward P/E of 21.3 for its industry.

It's also important to note that PWR currently trades at a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Engineering - R and D Services industry stood at 1.13 at the close of the market yesterday.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Diversify Advisory Services LLC lifted its stake in Quanta Services, Inc. (NYSE:PWR – Free Report) by 287.8% during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,149 shares of the construction company’s stock after purchasing an additional 3,079 shares during the period. Diversify Advisory Services LLC’s holdings in Quanta Services were worth $2,665,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Cornerstone Financial Management LLC increased its holdings in Quanta Services by 70.4% in the second quarter. Cornerstone Financial Management LLC now owns 46 shares of the construction company’s stock valued at $33,000 after purchasing an additional 19 shares during the last quarter. Boreal Capital Management LLC acquired a new position in Quanta Services in the first quarter valued at about $27,000. JNBA Financial Advisors boosted its holdings in Quanta Services by 1,733.3% during the second quarter. JNBA Financial Advisors now owns 55 shares of the construction company’s stock worth $40,000 after buying an additional 52 shares during the last quarter. Brown Lisle Cummings Inc. boosted its holdings in Quanta Services by 825.0% during the first quarter. Brown Lisle Cummings Inc. now owns 74 shares of the construction company’s stock worth $41,000 after buying an additional 66 shares during the last quarter. Finally, Markowski Investments bought a new position in Quanta Services during the second quarter worth about $55,000. 90.49% of the stock is currently owned by institutional investors.

Quanta Services Stock Performance Shares of Quanta Services stock opened at $551.47 on Friday. The stock’s fifty day simple moving average is $643.16 and its 200 day simple moving average is $664.02. The company has a current ratio of 1.10, a quick ratio of 1.05 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $82.91 billion, a PE ratio of 63.17, a PEG ratio of 1.78 and a beta of 1.27. Quanta Services, Inc. has a 12 month low of $408.36 and a 12 month high of $788.75.

Quanta Services (NYSE:PWR – Get Free Report) last posted its earnings results on Thursday, July 30th. The construction company reported $4.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.31 by $0.93. Quanta Services had a return on equity of 20.55% and a net margin of 4.03%. The firm had revenue of $9.56 billion during the quarter, compared to analysts’ expectations of $8.61 billion. During the same period in the previous year, the firm earned $2.48 earnings per share. The company’s revenue was up 41.1% on a year-over-year basis. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. On average, research analysts predict that Quanta Services, Inc. will post 15.37 EPS for the current year. Quanta Services Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Thursday, October 1st were issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 0.1%. The ex-dividend date was Thursday, October 1st. Quanta Services’s payout ratio is 5.04%.

Analyst Upgrades and Downgrades Several equities analysts have recently issued reports on PWR shares. Benchmark lowered Quanta Services to a “sell” rating in a research report on Friday, July 31st. Morgan Stanley downgraded shares of Quanta Services to an “underweight” rating in a research report on Monday, August 3rd. Weiss Ratings raised shares of Quanta Services from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. Sanford C. Bernstein upgraded shares of Quanta Services from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $748.00 to $775.00 in a report on Thursday, September 24th. Finally, Wall Street Zen downgraded shares of Quanta Services from a “buy” rating to a “hold” rating in a research note on Saturday, September 12th. Twenty-three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $761.24.

Read Our Latest Stock Analysis on Quanta Services

Quanta Services Company Profile (Free Report)

Quanta Services, Inc is an infrastructure solutions provider headquartered in Houston, Texas. The company designs, installs, repairs, maintains and upgrades essential infrastructure for the electric power, communications, pipeline, industrial and energy industries.

Its services include electric transmission and distribution construction, substation and renewable-energy infrastructure, storm restoration, fiber-optic and wireless communications networks, natural gas and pipeline construction, and related engineering and maintenance work.

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Wall Street expects a year-over-year increase in earnings on higher revenues when Quanta Services (PWR - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis specialty contractor for utility and energy companies is expected to post quarterly earnings of $5.01 per share in its upcoming report, which represents a year-over-year change of +50.5%.

Revenues are expected to be $10.99 billion, up 44% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.82% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Quanta Services?For Quanta Services, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.66%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Quanta Services will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Quanta Services would post earnings of $3.29 per share when it actually produced earnings of $4.24, delivering a surprise of +28.88%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Quanta Services appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Engineering - R and D Services industry, Sterling Infrastructure (STRL - Free Report) , is soon expected to post earnings of $6.07 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +74.4%. This quarter's revenue is expected to be $1.17 billion, up 69.6% from the year-ago quarter.

The consensus EPS estimate for Sterling Infrastructure has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.80%.

When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that Sterling Infrastructure will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Cantor Fitzgerald Investment Advisors L.P. grew its holdings in shares of Quanta Services, Inc. (NYSE:PWR – Free Report) by 90.3% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,040 shares of the construction company’s stock after purchasing an additional 3,815 shares during the quarter. Cantor Fitzgerald Investment Advisors L.P.’s holdings in Quanta Services were worth $5,166,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Boreal Capital Management LLC acquired a new stake in shares of Quanta Services in the first quarter valued at about $27,000. Cornerstone Financial Management LLC boosted its position in Quanta Services by 70.4% during the second quarter. Cornerstone Financial Management LLC now owns 46 shares of the construction company’s stock worth $33,000 after acquiring an additional 19 shares during the last quarter. JNBA Financial Advisors boosted its position in Quanta Services by 1,733.3% during the second quarter. JNBA Financial Advisors now owns 55 shares of the construction company’s stock worth $40,000 after acquiring an additional 52 shares during the last quarter. Brown Lisle Cummings Inc. grew its stake in Quanta Services by 825.0% during the 1st quarter. Brown Lisle Cummings Inc. now owns 74 shares of the construction company’s stock valued at $41,000 after acquiring an additional 66 shares in the last quarter. Finally, SJS Investment Consulting Inc. grew its stake in Quanta Services by 100.0% during the 1st quarter. SJS Investment Consulting Inc. now owns 82 shares of the construction company’s stock valued at $45,000 after acquiring an additional 41 shares in the last quarter. Hedge funds and other institutional investors own 90.49% of the company’s stock.

Analyst Ratings Changes A number of analysts have commented on the stock. Piper Sandler cut their price objective on shares of Quanta Services from $731.00 to $714.00 and set an “overweight” rating for the company in a report on Monday, September 28th. Morgan Stanley cut Quanta Services to an “underweight” rating in a report on Monday, August 3rd. Zacks Research lowered Quanta Services from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Benchmark cut Quanta Services to a “sell” rating in a report on Friday, July 31st. Finally, KeyCorp raised Quanta Services from a “sector weight” rating to an “overweight” rating and set a $807.00 price target for the company in a report on Friday, August 7th. Twenty-three investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $763.04.

View Our Latest Stock Analysis on PWR Quanta Services Trading Up 0.7% Shares of PWR opened at $599.96 on Thursday. The company has a current ratio of 1.10, a quick ratio of 1.05 and a debt-to-equity ratio of 0.56. Quanta Services, Inc. has a 12-month low of $404.51 and a 12-month high of $788.75. The firm has a 50-day moving average price of $645.62 and a 200 day moving average price of $664.09. The firm has a market capitalization of $90.20 billion, a P/E ratio of 68.72, a P/E/G ratio of 1.76 and a beta of 1.27.

Quanta Services (NYSE:PWR – Get Free Report) last issued its earnings results on Thursday, July 30th. The construction company reported $4.24 EPS for the quarter, topping analysts’ consensus estimates of $3.31 by $0.93. The company had revenue of $9.56 billion for the quarter, compared to the consensus estimate of $8.61 billion. Quanta Services had a net margin of 4.03% and a return on equity of 20.55%. Quanta Services’s quarterly revenue was up 41.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.48 earnings per share. Quanta Services has set its FY 2026 guidance at 16.450-16.950 EPS. Sell-side analysts forecast that Quanta Services, Inc. will post 15.37 EPS for the current year.

Quanta Services Announces Dividend The company also recently declared a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Thursday, October 1st were issued a dividend of $0.11 per share. The ex-dividend date was Thursday, October 1st. This represents a $0.44 dividend on an annualized basis and a dividend yield of 0.1%. Quanta Services’s dividend payout ratio (DPR) is currently 5.04%.

Quanta Services Company Profile (Free Report)

Quanta Services, Inc is an infrastructure solutions provider headquartered in Houston, Texas. The company designs, installs, repairs, maintains and upgrades essential infrastructure for the electric power, communications, pipeline, industrial and energy industries.

Its services include electric transmission and distribution construction, substation and renewable-energy infrastructure, storm restoration, fiber-optic and wireless communications networks, natural gas and pipeline construction, and related engineering and maintenance work.

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Key Takeaways Quanta's Q2 revenues reached $9.6 billion, supported by infrastructure demand and strong operating momentum.Record $53B backlog supports growth, with acquisitions expected to add $1.2-$1.4B in 2026 revenues.PWR faces inflation, labor shortages and permitting delays that could pressure margins and cash flow.
Quanta Services, Inc. (PWR - Free Report) is benefiting from robust infrastructure demand, driven by power grid modernization, electrification and expanding data-center capacity. However, macroeconomic uncertainty, inflationary pressures, supply-chain constraints and project execution challenges could test the company's ability to sustain growth despite its record project pipeline.

PWR’s second-quarter 2026 performance reflected strong operating momentum, with revenues reaching $9.6 billion and adjusted EBITDA and adjusted earnings per share posting strong double-digit growth. A record backlog of approximately $53 billion provides significant visibility into future activity. Management expects larger programs across utility generation and technology load centers to build over the coming years, supported by rising electricity demand and investments in critical infrastructure. Quanta's acquisitions of Phalcon, Enerfab, Percheron and PSD are also expected to contribute $1.2-$1.4 billion in 2026 revenues and $120-$140 million in adjusted EBITDA, while broadening its capabilities and market reach.

Nevertheless, backlog conversion remains crucial. Adverse weather, permitting delays, regulatory requirements, labor availability, supply-chain disruptions and inflation could affect project schedules, costs and profitability. Higher interest rates and weaker economic conditions could also influence customer spending decisions and the timing of infrastructure investments. Integrating acquisitions while maintaining execution discipline adds another challenge.

Quanta's strong demand pipeline and raised outlook provide a solid foundation for growth, but sustained performance will depend on managing costs, executing complex projects efficiently and converting backlog into cash flow. Investors should monitor margins, free cash flow and project delivery to assess whether the company can overcome macroeconomic headwinds and maintain its growth trajectory.

Quanta vs. AECOM & Dycom: Competitive LandscapeQuanta is well positioned to benefit from rising investments in North American infrastructure, even as it shares the market with renowned names like Dycom Industries, Inc. (DY - Free Report) and AECOM (ACM - Free Report) .

AECOM complements this growing public spending trend through its asset-light engineering, design, consulting and program management expertise, benefiting from growing public infrastructure, transportation, water and environmental projects supported by long-term government funding. Meanwhile, Dycom continues to ride the communications infrastructure cycle as broadband expansion, fiber deployments and network upgrades by major telecom operators sustain demand for its specialty contracting services.

While AECOM provides the planning and engineering capabilities, Dycom strengthens digital connectivity, and Quanta executes complex, large-scale utility and energy infrastructure projects, positioning all three to benefit from secular infrastructure modernization trends despite ongoing macroeconomic and regulatory uncertainties.

Published in construction

In the latest close session, Quanta Services (PWR - Free Report) was down 1.53% at $632.40. The stock trailed the S&P 500, which registered a daily loss of 1.09%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.

The specialty contractor for utility and energy companies's stock has climbed by 4.16% in the past month, exceeding the Construction sector's loss of 2.45% and the S&P 500's gain of 2.44%.

Analysts and investors alike will be keeping a close eye on the performance of Quanta Services in its upcoming earnings disclosure. The company's earnings report is set to go public on October 29, 2026. It is anticipated that the company will report an EPS of $5.01, marking a 50.45% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.99 billion, indicating a 43.95% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16.7 per share and revenue of $39.41 billion, indicating changes of +55.35% and +38.37%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Quanta Services should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.24% higher within the past month. Quanta Services is currently a Zacks Rank #3 (Hold).

Investors should also note Quanta Services's current valuation metrics, including its Forward P/E ratio of 38.47. Its industry sports an average Forward P/E of 22.28, so one might conclude that Quanta Services is trading at a premium comparatively.

We can also see that PWR currently has a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.1.

The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 192, this industry ranks in the bottom 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PWR in the coming trading sessions, be sure to utilize Zacks.com.

Quanta Services delivered 41% YoY revenue growth in Q2 FY26, driven by electric power infrastructure and robust data center demand. In addition to sustained demand, a record $53.4 billion backlog and contributions from recent acquisitions provide strong revenue visibility and support continued top-line growth. Strongly positioned to benefit from $1.5 trillion TAM through FY30.

Key Takeaways Quanta shares surged 64.6% YTD, fueled by strong infrastructure demand and improving earnings.Quanta's record $53.4B backlog and strategic acquisitions support its revenue growth outlook.PWR's 36.92X forward P/E exceeds the industry's 23.67X, raising valuation concerns after its rally. Quanta Services, Inc. (PWR - Free Report) has delivered impressive stock market performance in 2026, supported by accelerating investments in electric infrastructure, power generation, data centers and grid modernization. Strong project demand, record backlog and improving profitability have strengthened investor confidence. However, following its substantial rally, the stock's elevated valuation raises questions about the sustainability of further gains.

Quanta's shares have surged 64.6% year to date (YTD), significantly outperforming the Zacks Engineering - R and D Services industry's 17.3% growth. The stock has also outpaced the Zacks Construction sector, which declined 2.3%, and the S&P 500 Index, which advanced 13.8% during the same period.

PWR Stock’s YTD Price Performance

Image Source: Zacks Investment Research

PWR is trading above its 50-day and 200-day moving averages, indicating sustained positive momentum. The rally reflects improving earnings expectations and confidence in Quanta's ability to capitalize on expanding infrastructure spending.

PWR Trades Above 50-Day, Above 200-Day SMAs

Image Source: Zacks Investment Research

Infrastructure Investment Strengthens Quanta's Growth ProspectsQuanta continues to benefit from increasing electricity demand, aging transmission infrastructure and investments in grid reliability. Utilities are expanding generation capacity, upgrading transmission networks and investing in grid modernization to accommodate electrification and growing power requirements.

Demand from artificial intelligence (AI), hyperscale data centers and advanced manufacturing facilities is creating additional opportunities. These projects require extensive electrical, mechanical and power infrastructure, supporting Quanta's expanding presence in technology and large-load markets.

The company's Electric Infrastructure Solutions segment reported 44% year-over-year revenue growth in second-quarter 2026, with operating margin reaching 11.5%. Its Underground Utility and Infrastructure Solutions segment recorded 31% revenue growth, with operating margin improving to 9.1%. These results highlight strong demand and operational execution.

Quanta's total backlog reached a record $53.4 billion at June 2026-end, including $32.3 billion scheduled within 12 months. Electric Infrastructure backlog stood at $43.8 billion, strengthening visibility into future revenues. The company also expects substantial opportunities from multi-year utility and power generation programs.

Acquisitions and Operating Strength Support Further ExpansionStrategic acquisitions are another important growth driver. During the second quarter and July 2026, Quanta acquired Phalcon, Enerfab, Percheron and PSD, strengthening its electrical, mechanical, fabrication and engineering capabilities.

These businesses broaden Quanta's geographic presence and improve its ability to execute complex infrastructure projects. Management expects the acquisitions to contribute approximately $1.2-$1.4 billion in revenues and $120-$140 million in adjusted EBITDA during 2026.

Quanta's self-performing workforce provides additional advantages by improving project execution, resource utilization and scheduling reliability. Its growing manufacturing capabilities, including the Hyosung HICO joint venture for high-voltage circuit breakers, should also strengthen supply-chain support.

Strong second-quarter performance prompted management to raise its full-year 2026 revenue guidance to $39.3-$39.7 billion and adjusted earnings per share (EPS) expectations to $16.45-$16.95. Free cash flow guidance is expected to be between $2 and $2.5 billion, providing financial flexibility for continued expansion.

Higher Earnings Estimates Reinforce PWR's OutlookAnalysts have become increasingly optimistic about Quanta's earnings prospects. Over the past 60 days, the Zacks Consensus Estimate for 2026 EPS has increased to $16.70 from $16.43, while the 2027 estimate rose to $19.41 from $19.23.

PWR’s EPS Estimate Revision Trend

Image Source: Zacks Investment Research

The revised estimates imply year-over-year earnings growth of 55.4% in 2026 and 16.2% in 2027. The Zacks Consensus Estimate for revenue indicates growth of 38.4% and 14.8% for 2026 and 2027, respectively. Importantly, the absence of downward EPS revisions during this period indicates improving confidence in the company's growth trajectory.

Wall Street sentiment remains favorable. Quanta has an average brokerage recommendation of 1.29, with 24 of 28 brokerage firms assigning Strong Buy recommendations. The average price target of $803.67 indicates potential upside of 15.7% from the last closing price.

Image Source: Zacks Investment Research

Premium Valuation and Execution Risks Warrant CautionDespite these favorable developments, Quanta's substantial share price appreciation has pushed its valuation to elevated levels.

PWR currently trades at 36.92X forward 12-month earnings, considerably above the industry's 23.67X multiple and its five-year median of 28.58X. Although the valuation remains within its five-year range of 17.01X-61.73X, the premium suggests that investors have already priced in considerable earnings growth.

PWR Valuation vs Industry - P/E (F12M)

Image Source: Zacks Investment Research

The company also faces execution-related challenges. Large infrastructure projects involve regulatory approvals, permitting requirements, weather disruptions and potential supply-chain constraints. Skilled labor shortages, wage inflation and higher material costs could pressure margins.

Furthermore, acquisition integration and the growing complexity of large-scale projects introduce operational risks. Management expects seasonal moderation in Electric Infrastructure margins during the fourth quarter, highlighting potential quarterly variability.

How Does Quanta Compare With Its Competitors?Quanta competes with MasTec (MTZ - Free Report) , MYR Group (MYRG - Free Report) and Primoris Services (PRIM - Free Report) across several infrastructure markets.

MasTec provides electric transmission, renewable energy and communications infrastructure services. MasTec shares have lost 4.8% YTD, significantly underperforming Quanta. MasTec trades at 17.33X forward earnings, indicating a substantial valuation discount.

MYR Group specializes in electrical construction, transmission, distribution and substation projects. MYR Group shares have gained 43.3% YTD, reflecting favorable utility infrastructure demand. However, MYR Group has trailed Quanta's rally. MYR Group trades at 22.88X forward earnings, below Quanta's multiple.

Primoris Services operates across power delivery, utility infrastructure, renewable energy and pipeline construction. Primoris Services shares have plunged 33.3% YTD, indicating weaker stock performance. Primoris Services trades at 18.75X forward earnings, also considerably below Quanta.

While Quanta has delivered stronger shareholder returns, its valuation premium relative to all three competitors increases the importance of sustained earnings growth.

PWR vs Peer Price Performance (YTD)

Image Source: Zacks Investment Research

Should Investors Hold PWR Stock After Its Rally?Quanta remains well-positioned to benefit from sustained infrastructure investment, expanding electricity requirements and growing data center demand. Record backlog, strategic acquisitions, improving earnings estimates and strong project execution support its medium-term growth outlook.

However, the stock's elevated valuation, substantial YTD gains and exposure to execution risks limit its near-term risk-reward appeal. Although favorable infrastructure demand could support additional upside, much of the expected growth appears reflected in the share price.

Given these competing factors, Quanta's Zacks Rank #3 (Hold) supports maintaining existing positions rather than aggressively pursuing the stock following its sharp rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that it will release its third quarter 2026 financial results on Thursday, October 29, 2026, before the market opens. In conjunction with the press release, Quanta has scheduled a webcast and conference call for 9:00 a.m. Eastern time on Thursday, October 29, 2026.

Earnings Call Format and Supplemental Materials
Shortly following the issuance of its third quarter 2026 earnings release, Quanta will post its supplemental earnings materials on the Investor Relations section of the Quanta website (http://investors.quantaservices.com), including the Third Quarter 2026 Operational and Financial Commentary, which will provide operational and financial information, as well as industry and end-market commentary. While management intends to make brief introductory remarks during the earnings webcast, the Operational and Financial Commentary is intended to largely replace management's prepared remarks, allowing additional time for questions from the institutional investment community.

What:

Quanta Services Third Quarter 2026 Earnings Webcast

When:

Thursday, October 29, 2026 – 9:00 a.m. Eastern time

How:

This event will be facilitated through web-based audio using a Zoom Webinar. To register for and access the event, please log in to the webinar through the Investor Relations section of Quanta's website (http://investors.quantaservices.com). Once registered, if you prefer to access the call by phone, dial-in details will be provided on the event access page on the day of the call. When prompted, please enter the Participant ID to join the call. 

For those who cannot participate live, an archive of the webcast will be available shortly after the call on the Investor Relations section of Quanta's website (http://investors.quantaservices.com). For more information, please contact Kip Rupp or Sean Eastman at Quanta Services at (713) 629-7600.

About Quanta Services
Quanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.

Contact:

Kip Rupp, CFA, IRC

Sean Eastman

Quanta Services, Inc.

(713) 629-7600

SOURCE Quanta Services, Inc.

101 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Wholesale electricity prices in America's largest power market are forecast to surge at a rate that mirrors one infrastructure giant's explosive revenue growth, and the connection between those two numbers reveals who actually profits when the grid strains to keep…

Number in Focus: 41.1% Quanta Services (NYSE:PWR | PWR Price Prediction) grew second-quarter 2026 revenue 41.1% year over year to $9.56 billion. That is almost exactly the 41% increase the U.S. Energy Information Administration forecasts for 2026 wholesale electricity prices in PJM, the country’s largest power market. Quanta’s revenue growth is a reported result from its Q2 filing dated July 30, 2026. The PJM figure is a forecast from EIA’s October Short-Term Energy Outlook, which compares 2026 with 2025.

PJM’s forecast increase is the largest of any region EIA tracks. Average U.S. wholesale prices are expected to rise 11%, to $52 per megawatt-hour, and Northwest Mid-Columbia prices are forecast to fall 23%. EIA attributes much of this year’s increase to weather, including unusually hot summer temperatures and winter storms, so data centers explain only part of the 41%. Household bills move on a separate track, because retail rates also include transmission, distribution, capacity costs and regulatory decisions.

The part that survives the weather is the build-out. Commercial electricity demand, which includes data centers, is projected to grow another 2.8% in 2027, and industrial demand is expected to rise 2.7%. Meeting that load requires transmission lines, substations, and new generation, and Quanta builds all three.

What It Means Quanta’s growth is centered on the grid. Its Electric Infrastructure Solutions segment produced $7.84B of revenue, about 82% of the total, and its operating margin expanded to 11.5% from 10.1%. Underground Utility margins rose to 9.1% from 6.9%.

Profits grew faster than sales. Net income reached $451.4M (+96.89% YoY). Adjusted EPS of $4.24 beat the $3.03 consensus by 39.93%, the company’s fifth consecutive quarterly beat. Free cash flow came in at $886M (+470.26%). Backlog hit a record $53.44 billion, nearly 49% above $35.84B a year earlier.

Data-center work makes up about 15%-20% of the business, according to management. Quanta also self-performs 80 to 85% of its work, which means it uses its own crews instead of subcontractors. CEO Duke Austin said on the call: “I’m not sure people understand how difficult it is to interconnect the grid and how much we’re right in the middle of that interconnection.”

The same demand shows up across the power supply chain. GE Vernova (NYSE:GEV) reported a $176B backlog. Eaton (NYSE:ETN) said its electrical sector backlog grew 43%. Among power producers, Constellation Energy (NASDAQ:CEG) signed 920 MW of long-term nuclear contracts, Vistra (NYSE:VST) grew East segment adjusted EBITDA to $642M from $418M, and NRG Energy (NYSE:NRG) is developing a 1.2 GW gas plant in Texas for a hyperscaler. These are the suppliers behind the AI expansion rather than the chip names, and we covered seven of them, from power to cooling, in a free report you can grab here.

Market Reaction Quanta shares traded at $574.80 on the July 30, 2026 filing date and at $690.30 on October 9, 2026. The stock is up 8.04% over the past month, 63.68% year to date, and 55.79% over one year.

The market has rewarded the companies building the grid more than the companies selling power. Year to date, Vistra is down 1.8%, Constellation is down 15.94%, and NRG is down 32.26%.

Bull Case The investment question is which companies can turn rising electricity demand into higher earnings without taking on too much financing risk. Quanta’s numbers fit that test. Operating cash flow rose to $1.10B (+270.44%), and management said its balance sheet and credit profile got stronger even while it paid for acquisitions, pointing to ratings upgrades by Moody’s. Eaton offers a contrast: its long-term debt rose to $18.5B from $8.8B at year-end 2025 after its acquisitions.

Quanta also raised its 2026 outlook. It now expects revenue of $39.30B–$39.70B, adjusted EPS of $16.45–$16.95 and free cash flow of $2.00B–$2.50B. Four acquisitions costing about $1.24B upfront are expected to add $1.20B–$1.40B to full-year revenue, and a new $1B buyback was authorized in May 2026. Management says customers are planning capital spending “five, seven years” out.

Management says it takes about four years to train a craft worker, and new generation capacity could become a constraint. The backlog and the guidance suggest Quanta can manage those limits.

Bottom Line PJM’s 41% wholesale price forecast is partly a weather story. The spending on transmission, substations, and interconnection behind it will last longer, and Quanta’s 41.1% revenue growth shows where that money goes. Austin’s own view: “In many, many ways, we are just getting started.” For long-term investors, the companies building the grid have the clearest earnings exposure to rising power demand.

Contact [email protected] for any questions or corrections.

Quanta Services (PWR - Free Report) ended the recent trading session at $685.33, demonstrating a -2.25% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.47%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 1.25%.

The specialty contractor for utility and energy companies's shares have seen an increase of 11.82% over the last month, surpassing the Construction sector's loss of 4.19% and the S&P 500's gain of 1.15%.

Investors will be eagerly watching for the performance of Quanta Services in its upcoming earnings disclosure. The company is expected to report EPS of $5.01, up 50.45% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $10.99 billion, indicating a 43.95% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.7 per share and a revenue of $39.41 billion, indicating changes of +55.35% and +38.37%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Quanta Services. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Right now, Quanta Services possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Quanta Services is presently trading at a Forward P/E ratio of 41.99. This indicates a premium in contrast to its industry's Forward P/E of 24.8.

Meanwhile, PWR's PEG ratio is currently 1.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.

The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Key Takeaways Quanta raised its 2026 free cash flow outlook to $2-$2.5 billion after a strong first half.Record backlog of $53.4 billion supports Quanta's revenue visibility and cash-generation outlook.Quanta's cash flow could fluctuate with project timing, working capital, capex and acquisitions. Quanta Services (PWR - Free Report) is entering the second half of 2026 with strengthening cash-generation momentum, supported by robust operating performance, favorable working-capital trends and strong demand across its critical-infrastructure markets.

During the second quarter, Quanta generated operating cash flow of $1.10 billion and free cash flow (FCF) of $886 million. First-half FCF reached $1.07 billion, sharply higher than $288 million in the comparable 2025 period. Management attributed the second-quarter strength partly to favorable working-capital dynamics, particularly from large-load and renewable projects, while days sales outstanding improved to 57 days.

Strong Operations Support Higher Cash OutlookFollowing the strong first half, Quanta raised its full-year 2026 FCF outlook to $2-$2.5 billion, alongside operating cash flow expectations of $2.9-$3.4 billion. The outlook is underpinned by record backlog, expanding project activity and rising investment in electric grids, power generation, data centers and other mission-critical infrastructure.

Quanta's record $53.4 billion backlog also provides substantial revenue visibility, while its self-perform model, broader project scope and efficient resource utilization could help sustain profitability and cash conversion.

Can the Momentum Continue?Cash generation nevertheless could fluctuate with project timing and working-capital requirements. Quanta also expects roughly $900 million of net capital expenditures in 2026, while acquisitions continue to absorb capital. Weather, permitting, supply-chain issues, inflation and project execution remain additional risks.

Still, strong backlog, healthy end-market demand and improving collections suggest Quanta remains well positioned to sustain solid cash momentum through 2026.

Quanta Faces Competition From MasTec and EMCORQuanta Services faces competition from MasTec, Inc. (MTZ - Free Report) and EMCOR Group, Inc. (EME - Free Report) across power, electrical and mission-critical infrastructure markets. MasTec continues to strengthen its position through rising activity in power delivery, clean energy and data-center infrastructure. Its record $21.4 billion backlog supports future growth, while management expects more than $1 billion of operating cash flow in 2026. However, MasTec generated negative $59 million of free cash flow in the second quarter, highlighting comparatively greater working-capital and investment requirements.

EMCOR, meanwhile, is benefiting from strong demand across electrical and mechanical construction, particularly network and communications, manufacturing and other mission-critical markets. Record RPOs of $17.14 billion provide solid revenue visibility, while EMCOR’s operating discipline and strong revenue-to-cash-flow conversion reinforce its financial flexibility. Overall, both competitors have healthy pipelines, but Quanta’s stronger current free-cash-flow momentum remains an important competitive advantage.

PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 58.1% over the past year, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 Index.

Quanta's 1-Year Price Performance

Image Source: Zacks Investment Research

PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 36.07, as evidenced by the chart below.

Quanta Stock's Valuation (P/E F12M)

Image Source: Zacks Investment Research

Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 are pinned at $16.70 and $19.41 per share, respectively, reflecting an upward trend over the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 55.4% and 16.2%, respectively.
 

Image Source: Zacks Investment Research

Quanta currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

On CNBC’s “Mad Money Lightning Round,” Jim Cramer said he likes Quanta Services, Inc. (NYSE:PWR) and recommends buying the same. “I think there is still a buildout. Right now, because of the election, it looks like things aren’t going to go well. I think when that’s over, you’re going to see more building going on,” he added.

Lending support to his choice, Bernstein analyst Chad Dillard upgraded Quanta Services from Market Perform to Outperform on Sept. 24 and raised the price target from $748 to $775.

Cramer said Planet Labs PBC (NYSE:PL) is a “terrific” company and praised CEO Will Marshall.

“The stock went all the way up on a speculative bubble. Then it came all the way back down. It had a good day today [on Friday]. I think you should buy it. I think it’s done going down,” he added.

Planet Labs shares rose sharply on Friday after the company announced the successful launch of 20 satellites, including a prototype developed with Google.

Cramer said Duke Energy Corporation (NYSE:DUK) is down enough to buy now, while adding that he would like to get in at a 4% dividend yield. “Right now, it’s a little bit lower than that, because I do think the best piece of paper out there right now is the 5-year Treasury, which gives 5%. That’s going to give Duke a run for the money, which is why the stock’s been going down,” he added.

Duke Energy declared a quarterly cash dividend of $1.08 per share on its common stock on Oct. 1.

Price Action Quanta Services shares gained 2.1% to settle at $676.56 on Friday. Planet Labs shares jumped 8.4% to close at $17.50 during the session. Duke Energy rose 0.3% to settle at $114.13 on Friday. Photo via Shutterstock

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Quanta Services (PWR - Free Report) , which belongs to the Zacks Engineering - R and D Services industry, could be a great candidate to consider.

When looking at the last two reports, this specialty contractor for utility and energy companies has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 30.12%, on average, in the last two quarters.

For the last reported quarter, Quanta Services came out with earnings of $4.24 per share versus the Zacks Consensus Estimate of $3.29 per share, representing a surprise of 28.88%. For the previous quarter, the company was expected to post earnings of $2.04 per share and it actually produced earnings of $2.68 per share, delivering a surprise of 31.37%.

Price and EPS Surprise

For Quanta Services, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Quanta Services has an Earnings ESP of +2.66% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #1 (Strong Buy), it shows that another beat is possibly around the corner.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Key Takeaways NVIDIA posted 106% revenue growth and expects fiscal third-quarter revenues of about $108 billion.Quanta Services' revenues rose 41.1%, while adjusted EPS jumped 71% in the second quarter.Both companies have favorable earnings trends, with Quanta Services backed by a $53.4 billion backlog. The month of October kicks off the fourth quarter with a mixed backdrop for investors. The U.S. economy remains stable, with the Commerce Department’s latest estimate showing real GDP expanded at a 2.2% annualized rate in the second quarter, while consumer spending rose 3.8%. At the same time, elevated inflation is making it difficult for the Federal Reserve to ease monetary policy aggressively, while higher interest rates continue to put pressure on stock valuations. The Federal Reserve’s September projections put 2026 PCE inflation at 3.7% and the federal funds rate at 4.1% at year-end, underscoring the possibility of higher rates for longer.

Against this backdrop, investors entering October may want to emphasize companies capable of delivering above-market revenue and earnings growth rather than relying solely on multiple expansion. This approach is particularly relevant as the market moves into the third-quarter earnings reporting cycle shortly.

Here, we suggest investors buy NVIDIA (NVDA - Free Report) and Quanta Services (PWR - Free Report) in October to boost portfolio growth, as both companies combine strong earnings growth prospects with favorable estimate trends and long-term business drivers.

Rising Earnings Estimates Support Growth OutlookEarnings estimate trends also remain supportive heading into October. As shown in the chart below, the December 2026 EPS estimate for the S&P 500 has climbed to $8.45 as of September 2026 from $6.92 a year earlier, representing a 22.1% increase. Estimates have moved steadily higher through much of 2026, indicating improving earnings expectations.

Image Source: Zacks Investment Research

Against this backdrop, companies with strong fundamental growth and positive estimate revisions could remain particularly attractive as investors become increasingly selective heading into the third-quarter earnings season.

The opportunity, however, calls for selectivity rather than simply chasing stocks that have already rallied. September's sharp rise in Treasury yields and higher energy prices have increased concerns about inflation and borrowing costs, while the S&P 500 still posted a gain for the third quarter. Higher yields can create valuation pressure for rate-sensitive growth stocks, making earnings delivery increasingly important.

For investors looking to strengthen portfolios in October, growth stocks with visible earnings drivers, strong fundamentals and favorable estimate revision trends could therefore offer a way to participate in corporate profit expansion while maintaining greater focus on underlying business performance.

2 Growth Stocks to Buy in OctoberNVIDIA: It stands out as a growth candidate heading into October, supported by exceptionally strong demand for accelerated computing and AI infrastructure. The company reported fiscal 2027 second-quarter revenues of $96.2 billion, up 106% year over year, while guiding for fiscal third-quarter revenues of about $108 billion.

For growth investors, the Zacks Consensus Estimate as of late September called for fiscal 2027 revenues of $406.05 billion, up 88.04% year over year, while EPS was projected to increase 93.92%. The fiscal third-quarter consensus called for revenues of $109.02 billion and EPS of $2.47, implying year-over-year growth of 91.24% and 90%, respectively. NVDA carries a Zacks Rank #1 (Strong Buy) with an impressive five-year historical growth rate of 77.1%.

Image Source: Zacks Investment Research

Quanta Services: Beyond technology, Quanta Services offers exposure to growing investment in electricity transmission, grid modernization, power generation and other critical infrastructure. The company reported second-quarter 2026 revenues of $9.56 billion, up 41.1% year over year, while adjusted EPS jumped 71% to $4.24. Its backlog reached $53.4 billion at the end of the second quarter, up about 49% year over year, providing visibility into future project activity.

The Zacks Consensus Estimate calls for 55.3% EPS growth in 2026, well above the 19.4% industry average. Meanwhile, PWR's current year-over-year cash-flow growth stands at 21.2%, compared with 10.3% for the industry, according to Zacks. PWR carried a Zacks Rank #1 and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1, 2 (Buy) or 3 (Hold), offer the best upside potential. You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

Key Takeaways Dell Technologies saw AI server revenue double, while backlog surged to $95 billion in fiscal 2027.Quanta Services' backlog jumped 49% year over year to a record $53.4 billion amid AI data center demand.Forgent Power Solutions posted record bookings and backlog, with AI lab and hyperscaler wins boosting growth. September is historically known as the worst-performing month for U.S. equities. However, this year the month ended on a mixed note. The S&P 500 and the Dow fell 0.5% and 4.3%, respectively. However, the Nasdaq Composite rose 1.9%. The strong performance of the tech-heavy Nasdaq Composite was primarily driven by a rejuvenated artificial intelligence (AI) trade. The AI frenzy is set to stay firm in October. 

Here, we recommend three AI infrastructure bigwigs with a favorable Zacks Rank that are expected to maintain their momentum in October, too. These are: Dell Technologies Inc. (DELL - Free Report) , Quanta Services Inc. (PWR - Free Report) and Forgent Power Solutions Inc. (FPS - Free Report) . Each of the stocks currently sports a Zacks Rank #1 (Strong Buy) and has a Zacks Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks in the past month.

Image Source: Zacks Investment Research

Dell Technologies Inc.Dell Technologies reported blockbuster results for the second quarter of fiscal 2027. Revenues surged 53%, and EPS skyrocketed 203% year over year. Infrastructure Solutions Group revenue, jumped 89% to $31.8 billion, led by a 100% increase in AI-optimized server revenue, to $16.4 billion and a 122% surge in traditional server and networking sales to $10.5 billion.

AI Servers and Core Infrastructure StrengthIn the second quarter of fiscal 2027, DELL booked a record $60.9 billion worth of AI orders and recognized $16.4 billion of AI server revenues. Orders totaled $131.7 billion over the past 12 months, while backlog rose to $95 billion from $51.3 billion at the end of first-quarter fiscal 2027. DELL expects roughly $19 billion of AI server revenues in third-quarter fiscal 2027.

On May 27, the Pentagon announced a five-year contract with Dell worth $9.7 billion for Microsoft 365 productivity services. As a result, management is hopeful that its fiscal 2027 AI server sales will reach $60 billion. 

Integrated AI PortfolioDELL’s expanding AI infrastructure stack supports customers that want compute, networking, storage and data management on infrastructure they control. DELL’s ecosystem includes NVIDIA Corp. (NVDA - Free Report) , Advanced Micro Devices Inc. (AMD - Free Report) , OpenAI, Meta Platforms Inc. (META - Free Report) , Palantir Technologies Inc. (PLTR - Free Report) , Mistral AI, Alphabet Inc. (GOOGL - Free Report) , Reflection and Glean. 

DELL’s advanced AI-optimized servers including the PowerEdge XE9780 and 9780L platforms supporting up to 256 NVIDIA HGX B300 GPUs per rack, the XE9712 with NVIDIA GB300 NVL72, and the XE7745 supporting NVIDIA RTX Pro 6000 Blackwell GPUs, are noteworthy. 

Solid Estimate RevisionsDell Technologies has an expected revenue and earnings growth rate of 72.4% and more than 100%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 32.3% over the last 30 days.

DELL has an expected revenue and earnings growth rate of 18% and 12%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 26.1% over the last 30 days.

Quanta Services Inc.Quanta Services is well-positioned to capitalize on robust infrastructure spending across utility, power generation, technology and load center markets. The ongoing expansion of AI data centers, grid modernization, renewable generation and advanced manufacturing is driving customers to undertake larger, multiyear infrastructure programs.

Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. The company is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. 

Robust Long-Term PotentialFavorable trends in AI data centers helped drive total backlog to a record $53.4 billion as of June 30, 2026, up 49% year over year from $35.8 billion in June 2025. The increase was broad-based, with Electric Infrastructure Solutions backlog rising year over year to $43.8 billion from $30.3 billion, while Underground and Infrastructure Solutions backlog climbed to $9.7 billion from $5.6 billion.

PWR’s acquisition strategy is creating another growth avenue while complementing organic opportunities. Acquisitions of Phalcon, Enerfab, Percheron and PSD expand its electrical, mechanical, fabrication, engineering and front-end capabilities while broadening exposure to AI-powered data centers, power generation, advanced manufacturing, utilities and other critical infrastructure.

Solid Estimate RevisionsQuanta Services has an expected revenue and earnings growth rate of 38.4% and 55.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1.3% over the last seven days.

PWR has an expected revenue and earnings growth rate of 14.8% and 16.2%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 0.9% over the last 30 days.

Forgent Power Solutions Inc.Forgent Power Solutions designs, manufactures and sells electrical distribution equipment used in AI-powered data centers, the power grid and industrial facilities. FPS continues to benefit from exceptionally strong demand across AI data centers and grid infrastructure.

FPS exited fiscal 2026 with a record booking of $1.5 billion, a solid backlog of $3.02 billion and a book-to-bill that reached a record 3.3X. FPS’ integrated Powertrain Solutions strategy, engineering-led customer engagement and vertically integrated manufacturing model are helping it gain market share and win large multi-product contracts. The company also expects margin expansion and stronger free cash flow as new production facilities ramp and utilization improves through fiscal 2027.

AI Data Center Customer Reach DeepensForgent Power Solutions received its first direct order from a frontier AI lab during the quarter and signed a master service agreement with a hyperscaler. The initial AI-lab award covers medium-voltage transformers and switchgear for a campus expected to exceed one gigawatt. FPS also highlighted broader wallet-share gains as existing customers increasingly buy multiple product lines and integrated solutions. 

FPS announced a $35 million investment in a dedicated 385,000-square-foot Powertrain Solutions facility at its Tijuana campus. The project is expected to increase Powertrain Solutions manufacturing capacity by more than 50% and come online in the fourth quarter of fiscal 2027.

Solid Estimate RevisionsForgent Power Solutions has an expected revenue and earnings growth rate of 82.6% and 87.4%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 22% over the last 30 days.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Quanta Services (PWR - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).

While there are numerous reasons why the stock of this specialty contractor for utility and energy companies is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Quanta Services is 22.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 55.3% this year, crushing the industry average, which calls for EPS growth of 19.4%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for Quanta Services is 21.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 10.3%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 24.8% over the past 3-5 years versus the industry average of 12%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Quanta Services have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.3% over the past month.

Bottom LineQuanta Services has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that Quanta Services is a potential outperformer and a solid choice for growth investors.

On CNBC’s “Halftime Report Final Trades,” Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, picked F/M US Treasury 2 Year Note ETF (NASDAQ:UTWO).

Malcolm Ethridge, managing partner at Capital Area Planning Group, named ServiceNow, Inc. (NYSE:NOW) as his final trade.

Lending support to his choice, Cantor Fitzgerald analyst Thomas Blakey on Monday maintained an Overweight rating on ServiceNow and raised the price target from $141 to $174.

On July 22, ServiceNow reported second-quarter earnings of 90 cents per share, which beat the Street estimate of 85 cents, according to Benzinga Pro data. Quarterly revenue clocked in at $3.99 billion, beating the analyst consensus estimate of $3.93 billion and up from $3.22 billion in the same period last year.

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Shannon Saccocia, Neuberger Wealth CIO, recommended iShares U.S. Basic Materials ETF (NYSE:IYM).

Stephanie Link, chief investment strategist, head of investment solutions and equity portfolio manager at Hightower Advisors, picked Quanta Services, Inc. (NYSE:PWR), which was upgraded by Bernstein.

Bernstein analyst Chad Dillard on Thursday upgraded Quanta Services from Market Perform to Outperform and raised the price target from $748 to $775.

On the earnings front, Quanta Services reported better-than-expected second-quarter results on July 30 and raised its FY26 guidance above estimates.

Price Action:

ServiceNow shares fell 2.1% to close at $137.78 on Thursday. F/m US Treasury 2 Year Note ETF fell 0.01% during the session. Quanta Services shares rose 1.4% to settle at $643.50 on Thursday. iShares U.S. Basic Materials ETF declined 0.9% on Thursday. Photo via Shutterstock

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Key Takeaways Quanta's backlog reached $53B, providing visibility as utility and data-center programs expand.Quanta raised 2026 revenue guidance to $39.3-$39.7B and adjusted EPS to $16.45-$16.95.PWR's free cash flow rose to $1.07B, while four acquisitions are expected to add $1.2-$1.4B in 2026 revenues. Quanta Services, Inc. (PWR - Free Report) is entering a pivotal phase as record demand for power and infrastructure services creates opportunities to compound growth while returning capital to shareholders. With a record backlog, strong cash generation and an expanding portfolio of capabilities, the company is positioning itself to translate infrastructure spending into longer-term shareholder value.

Quanta’s second-quarter 2026 performance highlighted this momentum, with revenues reaching $9.6 billion and adjusted EBITDA and adjusted EPS posting strong double-digit growth. The company also raised its 2026 outlook, calling for revenues of $39.3-$39.7 billion, adjusted EBITDA of $4.09-$4.21 billion and adjusted EPS of $16.45-$16.95. A record backlog of approximately $53 billion provides visibility into future activity. Management expects larger programs across utility generation and technology load centers to build over the coming years, supported by rising electricity demand, data-center expansion and grid modernization.

Meanwhile, Quanta is deploying capital toward growth and shareholder returns. Four acquisitions, including Phalcon, Enerfab, Percheron and PSD, are expected to contribute $1.2-$1.4 billion in 2026 revenues and $120-$140 million in adjusted EBITDA. The company also authorized a new $1 billion share repurchase program and continues to pay a quarterly dividend of 11 cents per share.

Strong free cash flow adds further flexibility. As of June 30, 2026, free cash flow, defined as operating cash flow less net capital expenditures, increased to approximately $1.07 billion from about $288 million, as higher earnings and favorable contract liabilities more than offset increased receivables and investment spending. Quanta expects 2026 operating cash flow of $2.9-$3.4 billion and free cash flow of $2-$2.5 billion. However, project execution, permitting, supply-chain constraints and macroeconomic conditions remain key considerations as the company works to convert demand into durable financial returns.

Quanta vs. EMCOR & Sterling: Which Growth Engine Wins?Quanta is indeed leveraging disciplined capital allocation and strong backlog trends to support long-term revenue growth, which is also the game plan of its close peers like EMCOR Group, Inc. (EME - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) .

PWR combines strategic acquisitions, shareholder returns and liquidity management, with a record backlog providing significant visibility into future growth. Its new $1 billion share repurchase authorization, quarterly dividend and Moody’s credit-rating upgrade further highlight its financial flexibility. EMCOR similarly benefits from robust cash generation, disciplined acquisitions and shareholder-friendly capital deployment, while its sizable backlog supports continued demand across electrical and mechanical construction. Sterling remains focused on high-return organic opportunities and strategic acquisitions, with backlog strength in E-Infrastructure and Transportation supporting growth.

Overall, Quanta stands out for the scale of its backlog and acquisition strategy, while EMCOR and Sterling offer complementary capital-allocation approaches. Together, the companies appear well-positioned to convert infrastructure demand, liquidity and backlog momentum into sustained revenue and shareholder-value growth.

PWR Stock’s Price Performance & Valuation TrendPWR stock has gained 50.4% year to date, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 index.

Image Source: Zacks Investment Research

PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 34.62, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 reflect an upward trend over the past 30 days to $16.66 per share and $19.41 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 55% and 16.5%, respectively.

Image Source: Zacks Investment Research

Quanta currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Quanta Services (PWR - Free Report) have gained 3% over the past four weeks to close the last trading session at $634.9, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $802.82 indicates a potential upside of 26.5%.

The mean estimate comprises 28 short-term price targets with a standard deviation of $65.53. While the lowest estimate of $690.00 indicates an 8.7% increase from the current price level, the most optimistic analyst expects the stock to surge 53.7% to reach $976.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in PWR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why PWR Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 0% over the past month, as one estimate has gone higher compared to no negative revision.

Moreover, PWR currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much PWR could gain, the direction of price movement it implies does appear to be a good guide.

The U.S. grid rebuild is accelerating fast enough that three very different ETFs are all chasing the same dollars, but they disagree sharply on where the real money gets made.

American electricity demand is growing fast enough to force a wholesale grid rebuild. Hyperscale data centers, factory reshoring, and vehicle electrification are pulling load higher as coal retirements shrink supply. Three ETFs offer distinct routes into that spending: Global X U.S. Infrastructure Development ETF (CBOE:PAVE), the Utilities Select Sector SPDR Fund (NYSEARCA:XLU), and the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (NASDAQ:GRID).

Why the Load Curve Finally Broke The Department of Energy projects data centers alone could reach up to 12% of U.S. electrical demand by 2028. PJM Interconnection’s independent monitor concluded “data center load growth is the primary reason for recent and expected capacity market conditions, including total forecast load growth, the tight supply and demand balance, and high prices” across the mid-Atlantic and Midwest. The companies supplying power and cooling for that new capacity represent the other half of this investment thesis, and we profiled seven of them in a free AI infrastructure report.

The Federal Energy Regulatory Commission’s 2024 State of the Markets Report flagged that transmission projects driven by load growth were the second-largest category of projects entering service in 2024, trailing only reliability work. The 10-year Treasury yield sits at 4.94%, near its 12-month high of 5.01%, which raises capital costs for utilities and contractors throughout the value chain.

PAVE: Owning the Contractors Doing the Digging PAVE offers the broadest exposure. Global X built the fund around U.S. industrials, engineering firms, materials producers, and heavy equipment names serving utilities, data center developers, and state DOTs. With $13.5 billion in net assets, it has become the default vehicle for the broader infrastructure trade.

The top holding is Quanta Services (NYSE:PWR | PWR Price Prediction) at 4% of net assets, the country’s dominant electric transmission builder. Trailing revenue reached $32.9 billion, quarterly revenue rose 41% year over year, and the stock trades at a forward multiple of 33x — reflecting a market that prices Quanta as a structural winner.

The portfolio spans power-adjacent names like Eaton, Emerson Electric, Rockwell Automation, and Hubbell; construction firms including EMCOR, MasTec, and Sterling Infrastructure; materials producers such as Nucor, Vulcan Materials, and Martin Marietta; and railroads (CSX at 3%, Union Pacific at 3%), adding freight exposure.

The key tradeoff is dilution. Because PAVE owns rail, water, and highway names, investors get less pure power exposure than XLU or GRID. That said, PAVE is up 11% year-to-date and 14% over the past year, but slipped 6% in the past month as rate expectations firmed.

XLU: The Regulated Cash Flow Anchor XLU is the traditional choice for income-oriented investors. State Street’s utilities ETF holds $23.1 billion in net assets and is heavily concentrated: NextEra Energy (NYSE:NEE) is 12.9% of the fund, Southern Company 7.6%, Duke Energy 6.9%, and Constellation Energy 5.6%.

When regulated utilities invest in transmission or generation, that capital enters the rate base and earns a regulated return. Rising data center load is expanding rate bases faster than in decades. Independent power producers Constellation, Vistra, and NRG (a combined 11% of the fund) add merchant generation exposure, benefiting from tighter capacity prices driven by data center demand.

XLU delivered $1.48 in trailing 12-month distributions, offering a meaningful yield that PAVE and GRID do not match. With the 10-year yield near cycle highs, utility valuations have compressed. XLU is down 3% year-to-date and roughly flat over the past year, a reminder that utilities behave like long-duration bonds in a rising-rate environment.

GRID: The Overlooked Pure Play on the Equipment Bottleneck GRID is the most overlooked of the three. First Trust’s smart grid fund holds $12.1 billion in net assets, concentrated in electrical equipment makers: transformers, switchgear, cables, and power management systems. These are the components utilities are struggling to procure quickly enough.

The top five positions (Eaton at 8.5%, Schneider Electric at 8.3%, ABB at 8.1%, Quanta Services at 8.1%, and Johnson Controls at 8%) represent over 40% of assets. As a result, just five earnings reports can move the fund materially.

GRID also holds significant international/concentrated exposure. Schneider and ABB are European; Prysmian and Nexans supply cables; National Grid and Terna handle transmission. The shortage of transformers and high-voltage cable is global, and most suppliers with meaningful fabrication capacity are based outside the U.S.

That concentration has been rewarded in performance. GRID is up 19% year-to-date, 22% over the past year, and has returned 422% over a decade — the strongest track record of the three.

Which Fund Fits Which Investor Income-focused investors should anchor with XLU for its dividend and rate-base expansion, though the dividend advantage is diminished by a 5% Treasury yield. Those seeking participation in the broader buildout — including rail, materials, and construction — should hold PAVE. Those seeking the most focused bet on the equipment bottleneck should choose GRID, provided they can tolerate its concentration and international exposure.

A reasonable portfolio might own more than one. XLU and GRID together cover utility spending and equipment makers without PAVE’s industrial dilution. Investors with broad industrial or S&P 500 exposure may find PAVE the least additive.

Contact [email protected] for any questions or corrections.

Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.

One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.

It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.

Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?

That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.

One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.

The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.

Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.

Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.

The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.

Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.

The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.

The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: Quanta Services (PWR - Free Report) Quanta Services, Inc. is a leading provider of specialty contracting and infrastructure solutions for the electric and gas utility, power generation, large load center, manufacturing, communications, pipeline and energy industries. Quanta has operations in the United States, Canada, Australia and other selected international markets.

PWR, a #1 (Strong Buy) stock, was added to the Focus List on December 23, 2021 at $111.52 per share. Since then, shares have increased 476.23% to $642.61.

Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.18 to $16.45. PWR also boasts an average earnings surprise of 17%.

Moreover, analysts are expecting PWR's earnings to grow 53% for the current fiscal year.

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PWR's record backlog, surging earnings estimates and infrastructure growth support a bullish case despite its premium valuation after a strong rally.