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This Stock Lets You Profit from Building the Power Grid

  • Quanta Services (PWR) is trading at new all-time highs with strong technical momentum.
  • Shares have a 100% “Buy” opinion from Barchart.
  • PWR stock is up nearly 50% over the past year and 12% in the past month.
  • Analysts are mostly bullish on Quanta Services, with price targets reaching as high as $536.

Today’s Featured Stock

Valued at $67.6 billion, Quanta Services (PWR) is a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry. Quanta has operations in the United States, Canada, Australia, and other selected international markets. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. PWR checks those boxes. Since the Trend Seeker signaled a new “Buy” on Sept. 24, the stock has gained 15.68%.

 

www.barchart.com

Barchart Technical Indicators for Quanta Services

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Quanta hit an all-time high of $469.43 in morning trading on Oct. 31.

  • PWR has a Weighted Alpha of +64.51.
  • Quanta has a 100% “Buy” opinion from Barchart.
  • The stock gained 48.83% over the past year.
  • PWR has its Trend Seeker “Buy” signal intact.
  • The stock recently traded at $462.28 with a 50-day moving average of $408.25.
  • Quanta has made 9 new highs and gained 11.92% in the last month.
  • Relative Strength Index (RSI) is at 66.91.
  • There’s a technical support level around $441.58.

Don’t Forget the Fundamentals

  • $67.6 billion market capitalization.
  • 49.31x trailing price-earnings ratio.
  • 0.09% dividend yield.
  • Revenue is projected to grow 17.81% this year and another 13.06% next year.
  • Earnings are estimated to increase 18.11% this year and an additional 17.66% next year.

Analyst and Investor Sentiment on Quanta Services

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts like Quanta, and so do individual investors.

  • The Wall Street analysts tracked by Barchart have issued 16 “Strong Buys” and 12 “Hold” opinions on the stock with price targets between $360 and $521 – a very wide range.
  • Value Line rates the stock “Above Average” with a price target of $536.
  • CFRA’s MarketScope Advisor rates it a “Hold.”
  • Morningstar thinks the stock is 56% overvalued.
  • 1,295 investors following the stock on Motley Fool think the stock will beat the market while 98 think it won’t.
  • 20,060 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line on Quanta Services

Although Morningstar focuses on the high price-earnings ratio, Wall Street analysts and individual investors seem to be bullish.

Today’s Chart of the Day was written by Jim Van MeertenRead previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.


On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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