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Here's How Much a $1000 Investment in Quanta Services Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Quanta Services (PWR - Free Report) 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 (which accounted for 46.5% of 2023 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.
Renewable Energy Infrastructure Solutions segment (29.5%) 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.
The Underground Utility and Infrastructure Solutions segment (24%) 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.
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.
A $1000 investment made in August 2014 would be worth $7,484.30, or a gain of 648.43%, as of August 22, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 182.12% and the price of gold went up 88.92% over the same time frame.
Looking ahead, analysts are expecting more upside for PWR.
Quanta’s shares have underperformed its industry year to date, but earnings estimates for 2024 have moved up in the past 30 days. In the second quarter, its earnings and revenues increased year over year, backed by impressive growth across key metrics. The company is benefiting from robust demand for the company’s services, propelled by customers' multi-year initiatives aimed at modernizing and fortifying utility infrastructure, expanding renewable energy generation and transmission infrastructure, and transitioning toward a low-carbon economy. Accretive acquisitions and a solid growth strategy are added benefits. Impressively, Quanta has raised its full-year guidance, owing to the expected contributions from its recent acquisition of CEI. Yet, regulatory hurdles, cyclical business nature, and oil & gas volatility are concerns.
Shares have gained 6.92% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Quanta Services Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Quanta Services (PWR - Free Report) 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 (which accounted for 46.5% of 2023 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.
Renewable Energy Infrastructure Solutions segment (29.5%) 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.
The Underground Utility and Infrastructure Solutions segment (24%) 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.
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.
A $1000 investment made in August 2014 would be worth $7,484.30, or a gain of 648.43%, as of August 22, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 182.12% and the price of gold went up 88.92% over the same time frame.
Looking ahead, analysts are expecting more upside for PWR.
Quanta’s shares have underperformed its industry year to date, but earnings estimates for 2024 have moved up in the past 30 days. In the second quarter, its earnings and revenues increased year over year, backed by impressive growth across key metrics. The company is benefiting from robust demand for the company’s services, propelled by customers' multi-year initiatives aimed at modernizing and fortifying utility infrastructure, expanding renewable energy generation and transmission infrastructure, and transitioning toward a low-carbon economy. Accretive acquisitions and a solid growth strategy are added benefits. Impressively, Quanta has raised its full-year guidance, owing to the expected contributions from its recent acquisition of CEI. Yet, regulatory hurdles, cyclical business nature, and oil & gas volatility are concerns.
Shares have gained 6.92% over the past four weeks and there have been 2 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.