Valued at $56 billion by market cap, Houston, Texas-based Quanta Services, Inc. (PWR) operates as a leading contractor of infrastructure construction for electric & gas utilities, renewable energy, communications, and pipeline. The company’s operations span across North America and internationally.

The industrial giant has significantly outperformed the broader market over the past year. PWR stock has soared 40.4% over the past 52 weeks and 19.7% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 13.3% surge over the past year and 8.3% uptick in 2025.

Narrowing the focus, Quanta has also outperformed the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 17.6% gains over the past year and 14.4% returns in 2025.

Quanta Services’ stock prices declined 1.2% in the trading session following the release of its mixed Q2 results on Jul. 31. The demand for Quanta’s services has remained resilient as power grid upgrades and investment in energy infrastructure are gaining momentum. The company’s topline for the quarter surged by an impressive 21.1% year-over-year to $6.8 billion, surpassing the Street expectations by 3.3%. Further, its adjusted net income for the quarter soared 31.6% year-over-year to $373.6 million, and adjusted EPS of $2.48 exceeded the consensus estimates by 2.1%.

However, the company’s operating cash flows plummeted by 24.4% year-over-year to $295.7 million, raising concerns about Quanta’s ability to turn profits into cash inflows.

For the full fiscal 2025, ending in December, analysts expect PWR to report an adjusted EPS of $9.70, up 18.2% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.

The stock has a consensus “Moderate Buy” rating overall. Of the 27 analysts covering the PWR stock, opinions include 15 “Strong Buys” and 12 “Holds.”

This configuration is notably less optimistic than three months ago, when 20 analysts gave “Strong Buy” recommendations.

On Aug. 8, Evercore ISI Group analyst Durgesh Chopra reiterated an “Outperform” rating on PWR and raised the price target from $360 to $410.

As of writing, Quanta’s mean price target of $429.74 represents a 13.6% premium to current price levels. While the street-high target of $490 suggests a notable 29.6% upside potential.