Quanta currently trades at $325.42 and has been a dream stock for shareholders. It’s returned 697% since December 2019, blowing past the S&P 500’s 85.6% gain. The company has also beaten the index over the past six months as its stock price is up 21.9% thanks to its solid quarterly results.
Is it too late to buy PWR? Find out in our full research report, it’s free.
Why Are We Positive On PWR?
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
1. Skyrocketing Revenue Shows Strong Momentum
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Quanta’s sales grew at an exceptional 13.6% compounded annual growth rate over the last five years. Its growth surpassed the average industrials company and shows its offerings resonate with customers. 
2. Skyrocketing Backlog Locks In Future Sales
We can better understand Energy Products and Services companies by analyzing their backlog. This metric shows the value of outstanding orders that have not yet been executed or delivered, giving visibility into Quanta’s future revenue streams.
Quanta’s backlog punched in at $33.96 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 25.1%. This performance was fantastic and shows the company has a robust sales pipeline because it is accumulating more orders than it can fulfill. Its growth also suggests that customers are committing to Quanta for the long term, enhancing the business’s predictability. 
3. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Quanta’s EPS grew at an astounding 19.1% compounded annual growth rate over the last five years, higher than its 13.6% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
These are just a few reasons why we think Quanta is a great business, and with its shares topping the market in recent months, the stock trades at 33.3× forward price-to-earnings (or $325.42 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Quanta
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