Quanta Services (PWR) Shares Soar 2.21% on $1.7B Contract Win

Quanta Services (PWR) shares surged 2.21% intraday, reaching their highest level since January 2025, marking a two-day winning streak with a cumulative gain of 2.71%.

The strategy of buying PWR shares after they reached a recent high and holding for 1 week yielded strong results over the past 5 years. The 37.6% return, versus the broader market's 13%, demonstrates the effectiveness of this approach.

Recent High Point Identification: PWR's recent high point was identified on May 1, 2025, with an EPS of $1.78, surpassing the consensus estimate of $1.72 by $0.06.

One-Week Holding Period: Holding PWR shares for 1 week following this high point led to significant gains. Quanta Services' stock price was $321.04 on May 2, 2025, a slight decrease of 0.28% from the previous day.

Five-Year Performance: Over the past 5 years, PWR's stock price increased from the time the high point was established. The one-year price target set by Truist at $375, with an average analyst target of $333.82, indicates potential for continued growth.

Company's Strong Fundamentals: Quanta Services' robust financial performance, with record backlog, credit rating upgrade, and positive earnings outlook, supports the long-term viability of this strategy.

In conclusion, the strategy of buying PWR shares after they reach a recent high and holding for 1 week is backed by the company's strong fundamentals and positive market sentiment, resulting in superior returns compared to the broader market over the past 5 years.

Quanta Services has recently secured a significant contract, which is expected to bolster its stock performance. On May 7, 2025, the company was awarded a $1.7 billion contract for the first-phase construction of Invenergy's $7 billion Grain Belt Express transmission line. This project is crucial for enhancing energy delivery capacity across the Midwest and aligns with U.S. energy priorities, potentially driving investor interest and confidence in the company's future prospects.

In addition to the contract win, Quanta Services reported strong financial results for the first quarter of 2025. The company exceeded earnings and revenue forecasts, which is likely to positively influence investor sentiment and stock performance. These financial results, coupled with the strategic contract, position Quanta Services favorably in the market, potentially attracting more investors and driving further stock appreciation.