Yahoo Finance If You Invested $1000 in Quanta Services a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Quanta Services (PWR) ten years ago? It may not have been easy to hold on to PWR for all that time, but if you did, how much would your investment be worth today?
Quanta Services' Business In-Depth
With that in mind, let's take a look at Quanta Services' main business drivers.
Quanta 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.
Starting from fourth-quarter 2021, Quanta reports results under three reportable segments: Electric Power Infrastructure Solutions, Underground Utility and Infrastructure Solutions, and Renewable Energy Infrastructure Solutions.
The Electric Power Infrastructure Solutions segment (accounting for 52.4% of 2022 revenues) provides network solutions to customers in the electric power industry. Services performed include design, installation, upgrade, repair and maintenance of electric power transmission and distribution networks, and sub-station facilities; emergency restoration services; installation of “smart grid” technology on electric power networks; and communications infrastructure services.
The Underground Utility and Infrastructure Solutions segment (25.5%) provides solutions to customers involved in the transportation of natural gas, oil and other pipeline products. Services include design, installation, repair and maintenance of oil and gas transmission and distribution systems, and related trenching and directional boring services. Also, this segment provides pipeline protection services, high-pressure and critical-path turnaround services to the downstream and midstream energy markets.
Renewable Energy Infrastructure Solutions segment (22.1%) provides infrastructure solutions to clients involved in the renewable energy and/or related infrastructure. This segment provides services related to engineering, procurement, new construction, upgrade, and repair and maintenance of utility-scale wind, solar and hydropower generation facilities as well as battery storage facilities.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Quanta Services ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2013 would be worth $5,816.74, or a 481.67% gain, as of May 4, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 153.39% and the price of gold went up 33.09% over the same time frame.
Going forward, analysts are expecting more upside for PWR.
Quanta's shares have outperformed the industry this year. The company has been capitalizing on megatrends to lead the energy transition and enable technological development. Initiatives toward a reduced-carbon economy continue to drive demand for PWR’s services and depict incremental growth opportunities. Efforts such as electric vehicle charging infrastructure and undergrounding of electrical infrastructure gaining momentum. The company ended 2022 with a total backlog of $24.1 billion and a 12-month backlog of $13.8 billion, increasing 25% and 21.9%, respectively, from the prior year period. Quanta envisions to deliver a 10% organic adjusted EPS compound annual growth rate (CAGR) and more than 15% adjusted EPS CAGR through 2026. Also, acquisitions have been boosting market share and backlog.
The stock has jumped 5.20% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.
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