Quanta Services 15min chart shows KDJ Death Cross, Bearish Marubozu signal.

Tuesday, Aug 26, 2025 1:31 pm ET2min read

According to the 15-minute chart of Quanta Services, a bearish trend has emerged, as evidenced by the KDJ Death Cross and Bearish Marubozu at 08/26/2025 13:15. This indicates a shift in momentum towards the downside, with potential for further decreases in stock price. Sellers currently dominate the market, and the bearish momentum is likely to persist.

Quanta Services (PWR), a leading provider of integrated service solutions for infrastructure, has seen a shift in momentum towards the downside, as evidenced by the bearish trend observed on the 15-minute chart. The KDJ Death Cross and Bearish Marubozu patterns at 08/26/2025 13:15 indicate a potential for further decreases in stock price. Sellers currently dominate the market, and the bearish momentum is likely to persist.

Financial Performance and Growth

Despite the recent bearish trend, Quanta Services has shown resilience and growth potential. In the second quarter of 2025, the company reported a 21% year-over-year (YoY) revenue growth, reaching $6.77 billion [1]. Net income attributable to common stock rose to $229.3 million, translating to $1.52 per diluted share, while adjusted earnings per share (EPS) hit $2.48, up 29% from 2024 [1].

Energy Transition Leadership

Quanta Services' strategic alignment with the energy transition is a compelling catalyst for its growth. Recognized as the top solar and energy storage solutions provider in the U.S., the company has installed over 10,000 MW of solar capacity and 1,200 MW of energy storage in 2024 alone [1]. Its involvement in high-voltage transmission projects, such as the Boardman to Hemingway 500-kV line, further cements its role in modernizing the U.S. grid.

Analyst Sentiment and Valuation

While Quanta Services has shown strong financial performance, analysts exhibit mixed expectations. The average rating for the stock is 4.38, indicating moderate optimism but with significant dispersion in ratings [2]. Key valuation metrics, such as a 244.80x price-to-earnings (P/E) ratio and a 3.45% net profit margin (NPM), suggest that the stock may be overvalued [2].

Technical Indicators and Market Trends

Technically, Quanta Services is in a difficult position. The internal diagnostic score is 2.4 out of 10, signaling a weak trend with no bullish indicators and 2 bearish indicators over the last 5 days [2]. The KDJ Death Cross and Bearish Marubozu patterns further indicate a shift in momentum towards the downside.

Investment Thesis and Risks

Quanta Services is a rare blend of financial discipline, strategic foresight, and industry leadership. However, the company faces key risks, including regulatory delays in infrastructure projects and inflationary pressures on materials. Despite these challenges, Quanta's diversified backlog, strong balance sheet, and leadership in high-growth sectors like solar and storage mitigate these concerns.

Conclusion

Quanta Services is facing a tough short-term outlook with weak technicals, mixed analyst ratings, and falling prices. While the fundamentals show some resilience, particularly in earnings growth, they are not enough to offset the negative trends in valuation and sentiment. Investors should consider waiting for a clearer reversal signal before initiating new positions and closely monitor upcoming earnings reports and market catalysts for a potential bottoming scenario.

References

[1] https://www.ainvest.com/news/quanta-services-pwr-high-conviction-growth-stock-2025-2508/
[2] https://www.ainvest.com/news/stock-analysis-quanta-services-outlook-weak-technicals-mixed-analyst-sentiment-2508/

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