Quanta Services, Inc. provides infrastructure solutions for the electric and gas utility, renewable energy, communications, and pipeline and energy industries in the United States, Canada, Australia, and internationally. The company's Electric Power Infrastructure Solutions segment engages in the design, procurement, construction, upgrade, repair, and maintenance of electric power transmission and distribution infrastructure and substation facilities; installation, maintenance, and upgrade of electric power infrastructure projects; installation of smart grid technologies on electric power networks; and design, installation, maintenance, and repair of commercial and industrial wirings. This segment also offers aviation services; emergency restoration services; and other engineering and technical services; design and construction solutions to wireline and wireless communications, cable multi-system operators, and other customers; and training for electric workers, as well as training for the gas distribution and communications industries. The company's Renewable Energy Infrastructure Solutions segment is involved in engineering, procurement, construction, repair, and maintenance of wind, solar, and hydropower generation facilities, as well as battery storage facilities; and provision of engineering and construction services for substations and switchyards, transmission, and other electrical infrastructures. The company's Underground Utility and Infrastructure Solutions segment offers design, engineering, procurement, construction, upgrade, repair, and maintenance services for natural gas systems for gas utility customers; fabrication services for pipeline support systems and structures and facilities; and engineering and construction services for pipeline and storage systems, and compressor and pump stations. The company was formerly known as Fabal Construction, Inc. and changed its name to Quanta Services, Inc. in November 1997. The company was incorporated in 1997 and is headquartered in Houston, Texas.

Quanta Services, Inc.

Quanta Services, Inc. PWR is scheduled to report its third-quarter 2025 results on Oct. 30, before the opening bell.
In the last reported quarter, the adjusted earnings and revenues topped the Zacks Consensus Estimate by 2.1% and 3.3%, respectively. Year over year, both metrics grew 30.5% and 21.1%, respectively.
Quanta’s earnings topped the consensus mark in each of the trailing four quarters, with the average surprise of 5.7%.
PWR’s Trend in Estimate Revision
The Zacks Consensus Estimate for Quanta’s third-quarter adjusted earnings per share (EPS) has trended upward to $3.25 from $3.24 over the past 30 days. The revised estimated figure indicates 19.5% growth from the year-ago EPS of $2.72.
The consensus mark for revenues is pegged at $7.44 billion, implying 14.6% year-over-year growth.
Quanta Services, Inc. Price and EPS Surprise
Factors Likely to Have Defined Quanta’s Q3 Performance
Revenues
During the third quarter, Quanta’s top-line performance is expected to have trended upward on the back of favorable public infrastructure demand, fueled by several federal and state funding initiatives. Amid this booming market backdrop, the company is likely to have witnessed increased project activity in high-voltage transmission, grid modernization and renewable energy, supported by ongoing customer investments in electrification, technology-driven load centers and manufacturing reshoring.
The market fundamentals can be substantiated from the expected increased contributions from the Electric Infrastructure Solutions (contributed 80.6% to second-quarter 2025 revenues) and Underground Utility and Infrastructure Solutions (contributed 19.4% to second-quarter 2025 revenues) segments. For the quarter to be reported, Quanta expects revenues from the Electric Infrastructure Solutions segment to grow at a double-digit rate year over year, while the same for the Underground Utility and Infrastructure Solutions segment is expected to increase sequentially from $1.31 billion reported in the second quarter of 2025.
Segment-wise, our model expects revenues from the Electric Infrastructure Solutions segment and the Underground Utility and Infrastructure Solutions segment to increase year over year by 12.7% to $5.9 billion and 13.2% to $1.43 billion, respectively.
Notably, Quanta’s inorganic initiatives, along with its focus on the growth strategy, are also likely to have aided its quarterly performance, positioning it well for the upcoming quarters.
Margins
Quanta has been facing headwinds in the form of inflated labor costs, project delays and supply inefficiencies for some time now. However, leverage from the increased top line, growing backlog and efficient project deliveries is likely to have aided its bottom line during the third quarter. Also, variability in project timing adds to the tailwinds favoring the margins during the quarter.
PWR expects the operating margin in the Electric Infrastructure Solutions and the Underground Utility and Infrastructure Solutions segments to be the highest in the third quarter compared with 11% and 7.5% reported in the year-ago period, respectively.
Per our model, the company’s overall operating margin is expected to expand 10 basis points (bps) from a year ago to 6.7% in the quarter to be reported. We also expect the adjusted EBITDA margin to grow 70 bps year over year to 11.2%.
Segment-wise, our model predicts the operating margin in the Electric Infrastructure Solutions segment to expand 40 bps to 11.4%, while that for the Underground Utility & Infrastructure Solutions segment is expected to increase 100 bps to 8.5%.
What Our Model Predicts for Quanta
Our proven model does not conclusively predict an earnings beat for Quanta this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.
Earnings ESP: PWR has an Earnings ESP of -1.48%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The stock currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector, which per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
Vulcan Materials Company VMC currently has an Earnings ESP of +2.87% and a Zacks Rank of 2.
Vulcan’s earnings have topped in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 10.2%. Vulcan’s earnings for the third quarter of 2025 are expected to grow 20.7%.
EMCOR Group, Inc. EME has an Earnings ESP of +0.20% and a Zacks Rank of 2.
EMCOR’s earnings topped estimates in each of the last four quarters, with an average surprise of 16.8%. EMCOR’s earnings for the third quarter of 2025 are expected to increase 14.7%.
Martin Marietta Materials, Inc. MLM currently has an Earnings ESP of +0.26% and a Zacks Rank of 2.
Martin Marietta’s earnings beat estimates in two of the last four quarters and missed on the remaining two occasions, the negative average surprise being 0.9%. Martin Marietta’s earnings for the third quarter of 2025 are expected to grow 12.5%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Quanta is Set to Report Q3 Earnings: Here's What Investors Must Know

EMCOR Group, Inc. EME is scheduled to report third-quarter 2025 results on Oct. 30, before the opening bell.
In the last reported quarter, EMCOR delivered a strong second-quarter 2025, marked by record revenue, profitability, and backlog. Revenues rose 17.4% year over year to $4.30 billion, driven by robust activity across construction segments, especially data centers, healthcare, manufacturing, and institutional markets. Operating margin expanded to 9.6% from 9.1% a year ago, reflecting disciplined project execution, favorable mix, and productivity gains. Diluted earnings per share (EPS) grew 28% to $6.72, also reaching a quarterly record. The company's backlog (Remaining Performance Obligations, or RPOs) was an all-time high at $11.91 billion.
After delivering robust results in the first half of the year—including record second-quarter revenues and margins—investors will watch closely to see if EMCOR can sustain its outperformance through the third quarter despite macro uncertainties.
This specialty contracting services provider surpassed earnings estimates in each of the trailing four quarters, with an average of 16.8%.
How Are Estimates Placed for EME Stock?
The Zacks Consensus Estimate for the third-quarter EPS has increased to $6.65 from $6.57 over the past 30 days. The estimated figure indicates 14.7% growth from the year-ago reported figure. The consensus mark for revenues is pegged at $4.26 billion, suggesting a 15.2% year-over-year increase.
For 2025, EMCOR is expected to register a 15.4% increase from a year ago in revenues. Its bottom line is expected to witness an improvement of 17.1% from a year ago. Below is what to expect in the third quarter for EME stock.
Image Source: Zacks Investment Research
Key Driving Factors Likely to Influence EMCOR’s Q3 2025 Results
Record Backlog Providing Strong Revenue Visibility
EMCOR ended the second quarter with record RPOs of $11.91 billion, up 32.4% year over year. This robust backlog across Network & Communications, Institutional, Manufacturing & Industrial, Healthcare and Hospitality & Entertainment sectors provides substantial conversion opportunities for the third quarter project execution. The elevated RPO base ensures steady revenue flow and supports the stronger full-year outlook.
Strength in Electrical and Mechanical Construction
The company’s core U.S. Electrical (which accounted for 31% of second-quarter total revenues) and Mechanical Construction operations (which accounted for 41% of second-quarter total revenues) continue to deliver exceptional results, supported by strong demand in data centers, manufacturing and healthcare. With both segments reporting record revenues and margin expansion in the second quarter, this strength is expected to carry into the third quarter as multi-phase build-outs progress and large-scale project activity remains healthy.
Margin Tailwinds from Execution Discipline and Productivity Initiatives
EMCOR anticipates maintaining strong margin execution into the third quarter, supported by disciplined project management, a favorable mix and productivity gains. The company’s use of virtual design and construction, prefabrication and strong labor and project planning continues to enhance productivity and support margins. For 2025, the company now expects operating margins between 9% and 9.4%, signaling confidence in sustaining high-quality project execution in the coming quarters. Given that the second quarter delivered a 9.6% operating margin, management commentary suggests stable to strong margin performance continuing into the third quarter.
Improved Outlook for Building Services Operations
The U.S. Building Services segment saw a positive shift as Mechanical Services growth outweighed prior declines in site-based operations, indicating improving demand across HVAC service, retrofit and repair work. This turnaround increases the likelihood of steady contribution from this segment in the third quarter.
Earnings Visibility and Profitability Guidance
Guidance for non-GAAP EPS for 2025 has been raised to a range of $24.50 to $25.75 from $22.65-$24.00 during the second-quarterearnings call driven by higher profitability expectations for the back half of the year. As the third quarter is a key seasonal execution period for EMCOR, this upgraded outlook signals management’s confidence in sustaining high project throughput and profitability in the quarter. The EPS guidance increased from the prior $22.65 to $24.00 range, which incorporates stronger-than-anticipated first-half performance and expected continuity of this trend into the third quarter.
What the Zacks Model Unveils for EMCOR
Our proven model predicts an earnings beat for EMCOR for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see below.
Earnings ESP: EME has an Earnings ESP of +0.20%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EMCOR Stock’s Price Performance
EME stock has gained 22.1% over the July to September 2025 period, underperforming the Zacks Building Products - Heavy Construction industry but performing better than the Zacks Construction sector.
EME shares reached $754.85 as of Oct. 28, 2025—just 0.1% below the 52-week high of $755.57 and nearly 135.2% above the low of $320.89, underscoring investor conviction in EMCOR’s resilient earnings and record project pipeline.
EME’s July-September Share Price Performance
Image Source: Zacks Investment Research
EME Stock’s Valuation: Premium but Supported by Fundamentals
EMCOR’s forward P/E of 28.22X remains elevated compared with the industry average of 24.35X and its own five-year median of 17.27X, nearing the top of its historical band of 11.88X–28.22X. This premium places the stock alongside sector leaders such as Quanta Services PWR, Comfort Systems USA FIX and MasTec MTZ, all of which have ridden strong momentum from data center expansion, electrification initiatives and industrial infrastructure upgrades. The key debate now is whether EMCOR can continue to command this valuation premium as growth gradually normalizes and cost pressures persist. For context, Quanta, Comfort Systems and MasTec currently trade at 36.78X, 38.95X and 28.18X, respectively.
Image Source: Zacks Investment Research
Why EME Stock Is a Buy for Now?
EMCOR is riding strong momentum, backed by solid earnings visibility and a business mix positioned in the fastest-growing areas of the construction landscape. The company isn’t just benefiting from cyclical tailwinds, it is delivering structural outperformance, evidenced by record backlog, expanding margins, raised full-year EPS guidance and a consistent earnings-beat track record. With the Zacks Consensus Estimate moving higher ahead of the release and a Zacks Rank #2 (Buy), the setup leans favorably toward another solid quarter.
While the stock trades at a premium, EMCOR has earned it. Its valuation sits in the same league as industry leaders like Quanta, Comfort Systems and MasTec benefiting from long-duration secular catalysts such as data centers, electrification, healthcare infrastructure and industrial capacity expansion. With record RPOs providing multi-quarter revenue visibility and management signaling sustained margin strength into the back half of 2025, the company is positioned to continue justifying and potentially expanding that premium.
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EMCOR Before Q3 Earnings: Buy, Sell or Hold the Stock?

Quanta Services, Inc. PWR is scheduled to report its third-quarter 2025 results on Oct. 30, before the opening bell.
In the last reported quarter, the adjusted earnings and revenues topped the Zacks Consensus Estimate by 2.1% and 3.3%, respectively. Year over year, both metrics grew 30.5% and 21.1%, respectively.
Quanta’s earnings topped the consensus mark in all the trailing four quarters, with an average surprise of 5.7%.
Quanta Services, Inc. Price and EPS Surprise
PWR’s Trend in Estimate Revision
The Zacks Consensus Estimate for Quanta’s third-quarter adjusted earnings per share (EPS) has trended upward to $3.25 from $3.24 over the past 30 days. However, the estimated figure indicates 19.5% growth from the year-ago EPS of $2.72.
The consensus mark for revenues is pegged at $7.44 billion, implying 14.6% year-over-year growth.
Factors Likely to Have Shaped Quanta’s Q3 Performance
Revenues
Quanta Services’ third-quarter results are likely driven by solid execution across its core businesses, sustained strength in end-market demand and ongoing strategic growth initiatives that continued to propel momentum through the period.
Revenues are expected to have risen year over year, supported by favorable industry trends and elevated infrastructure spending, particularly in electric grid modernization, power generation upgrades, AI-driven solutions and data-center expansion. Additionally, Quanta’s broad service portfolio and long-term programs focused on upgrading utility infrastructure and advancing renewable energy generation and transmission projects are likely to have further bolstered its performance during the third quarter.
The Electric Infrastructure Solutions segment (which accounted for 80.6% of second-quarter 2025 revenues) remained the key earnings catalyst, supported by management’s prior guidance that the third quarter would represent its strongest revenue and margin quarter of 2025, benefiting from double-digit year-over-year revenue growth and the peak seasonal margin profile driven by higher volumes of transmission, grid modernization and storm-hardening work. This strength was further amplified by the ongoing surge in power-infrastructure investment, as utilities advance multiyear capital programs to meet rising electricity demand from data centers, AI-driven load growth, domestic manufacturing expansion and renewable interconnections — a trend management emphasized as a foundational growth engine heading into the back half of 2025. Our model expects revenues from the Electric Infrastructure Solutions segment to increase 12.7% year over year to $5.9 billion. We expect the operating margin in the Electric segment to expand 40 bps to 11.4%.
The Underground Utility & Infrastructure Solutions segment (which accounted for 19.4% of second-quarter 2025 revenues) also provided meaningful support, with the third quarter expected to deliver its strongest margins of the year and sequential revenue growth, aided by improved execution and incremental contributions from recently acquired businesses. Strategic acquisitions — notably Dynamic Systems and a stake in Bell Lumber & Pole — are likely to have added to third-quarter results by expanding Quanta’s mechanical, fabrication and supply-chain capabilities, enhancing cross-selling opportunities across electrical, civil and technology-infrastructure end markets and strengthening its ability to deliver fully integrated, self-perform solutions.
Our model expects revenues from this segment to increase 13.2% year over year to $1.4 billion. We expect the operating margin in the segment to expand 100 bps to 8.5%.
What Our Model Predicts for PWR
Our proven model does not conclusively predict an earnings beat for Quanta this time around. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.
Earnings ESP: PWR has an Earnings ESP of -1.48%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
Vulcan Materials Company VMC currently has an Earnings ESP of +2.87% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vulcan’s earnings have topped in two of the trailing four quarters and missed on the remaining two occasions, the average surprise being 10.2%. Vulcan’s earnings for the third quarter of 2025 are expected to grow 20.7%.
EMCOR Group, Inc. EME has an Earnings ESP of +0.20% and a Zacks Rank of 2.
EMCOR’s earnings topped estimates in each of the last four quarters, with an average surprise of 16.8%. EMCOR’s earnings for the third quarter of 2025 are expected to increase 14.7%.
Martin Marietta Materials, Inc. MLM currently has an Earnings ESP of +0.26% and a Zacks Rank of 2.
Martin Marietta’s earnings beat estimates in two of the last four quarters and missed on the remaining two occasions, the negative average surprise being 0.9%. Martin Marietta’s earnings for the third quarter of 2025 are expected to grow 12.5%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Quanta to Report Q3 Earnings: What Investors Should Know?

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Quanta Services (PWR), a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Quanta Services currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?
In order to see if PWR is a promising momentum pick, let's examine some Momentum Style elements to see if this specialty contractor for utility and energy companies holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For PWR, shares are up 3.89% over the past week while the Zacks Engineering - R and D Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 8.75% compares favorably with the industry's 3.23% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Quanta Services have increased 11.58% over the past quarter, and have gained 43.08% in the last year. On the other hand, the S&P 500 has only moved 7.05% and 18.26%, respectively.
Investors should also take note of PWR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now PWR is averaging 996,870 shares for the last 20 days..
Earnings Outlook
The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with PWR.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PWR's consensus estimate, increasing from $10.55 to $10.58 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom Line
Taking into account all of these elements, it should come as no surprise that PWR is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Quanta Services on your short list.
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Quanta Services, Inc. (PWR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Quanta Services (PWR) is a Great Momentum Stock: Should You Buy?

A strong stock as of late has been Quanta Services (PWR). Shares have been marching higher, with the stock up 8.8% over the past month. The stock hit a new 52-week high of $447.17 in the previous session. Quanta Services has gained 39.5% since the start of the year compared to the 6.6% move for the Zacks Construction sector and the 8.3% return for the Zacks Engineering - R and D Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 31, 2025, Quanta Services reported EPS of $2.48 versus consensus estimate of $2.43.
For the current fiscal year, Quanta Services is expected to post earnings of $10.58 per share on $27.8 in revenues. This represents a 17.95% change in EPS on a 17.45% change in revenues. For the next fiscal year, the company is expected to earn $12.32 per share on $30.58 in revenues. This represents a year-over-year change of 16.47% and 9.98%, respectively.
Valuation Metrics
While Quanta Services has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quanta Services has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 41.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.8X. On a trailing cash flow basis, the stock currently trades at 33X versus its peer group's average of 10.5X. Additionally, the stock has a PEG ratio of 2.41. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Quanta Services currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quanta Services passes the test. Thus, it seems as though Quanta Services shares could have a bit more room to run in the near term.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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Quanta Services, Inc. (PWR) Soars to 52-Week High, Time to Cash Out?

Key Points
AI data centers typically operate at 20 to 40 kilowatts per rack, with designs targeting 50 to 100 kilowatts or more; however, many can't break ground because the grids lack sufficient capacity.
Power bottlenecks favor physical infrastructure companies over software optimization.
These businesses capture spending before chips get installed, creating revenue tied to AI deployment regardless of architecture.
Artificial intelligence (AI) has an energy problem that software can't solve. Racks of Nvidia H100-class systems commonly run 20 to 40 kilowatts, and many new AI designs target 50 to 100 kilowatts or more with liquid cooling. The result: Hyperscalers are choosing data center locations based on power grid capacity rather than tax breaks or fiber access, and utility companies are scrambling to upgrade transmission infrastructure that wasn't designed for industrial computing loads.
This power constraint is creating winners in unglamorous businesses. Thermal management specialists are designing cooling for unprecedented heat densities. Electrical equipment makers are building distribution gear that stabilizes sudden graphics processing unit (GPU) power surges. Specialty contractors are constructing transmission lines that must be completed before facilities can break ground.
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These three AI infrastructure plays capture unavoidable costs that scale with every new AI cluster, regardless of which chip architecture ultimately dominates.
The thermal management specialist
Vertiv (NYSE: VRT) designs and manufactures thermal management systems, power distribution units, and turnkey modular data center halls for AI deployments. The company's cooling solutions address the challenge of AI racks that commonly run 20 to 40 kilowatts, with many designs targeting 50 to 100 kilowatts or more compared to the 5 to 15 kilowatts traditional server racks produce, requiring both air-cooled and liquid-cooled architectures.
Q3 2025 results showed strong performance, with raised full-year guidance reflecting order backlog tied directly to AI infrastructure builds. The equipment sales model creates multiyear revenue visibility as cooling systems require regular maintenance and eventual replacement, while new data center construction drives incremental demand from hyperscalers, colocation providers, and enterprise customers.
The electrical distribution leader
Eaton (NYSE: ETN) manufactures electrical power distribution equipment, backup power systems, and control software for commercial and industrial customers, including data centers. The company's data center portfolio includes uninterruptible power supplies, power distribution units, switchgear, and busway systems that manage electricity from the utility connection down to individual server racks.
Eaton recently launched detection and control systems designed to manage the sudden power bursts GPU clusters create when hundreds of processors spin up simultaneously. The systems address grid-to-chip instability that wasn't a concern in traditional server environments, where power draw remained relatively constant.
The company's ability to deliver integrated power solutions from utility-level gear through rack distribution creates a competitive advantage in complex builds, while decade-plus replacement cycles for major power gear generate recurring service revenue alongside new construction demand.
The grid infrastructure builder
Quanta Services (NYSE: PWR) provides specialty contracting services for electric power, pipeline, and communications infrastructure, including the design and construction of transmission lines and substations.
The company's electric power division handles the large-scale projects utility companies need to complete before hyperscalers can energize AI campuses. This work includes building high-voltage transmission lines, upgrading substations to handle increased load, and installing transformers that step down power from transmission voltages to usable levels.
Recent revenue growth and a raised 2025 outlook reflect contracts tied to grid modernization projects that utility companies must complete before data centers can break ground. Quanta captures infrastructure spending that happens months or years before the first GPU gets racked, with multiyear project timelines providing visibility into revenue beyond 2026.
The power infrastructure advantage
These three AI spillover stocks won't move in lockstep. Quanta's revenue lumps with project milestones, Eaton's business extends beyond data centers, and Vertiv faces competition from legacy HVAC manufacturers. But the physics work in each company's favor: AI clusters need power delivery and thermal management before any software runs.
Furthermore, the AI power bottleneck isn't temporary. As AI workloads scale and new architectures emerge, the constraint remains: Every processor needs electricity and cooling. These three capture infrastructure spending that happens regardless of whether future AI runs on Nvidia GPUs, custom accelerators, or architectures that don't even exist yet.
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George Budwell has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Quanta Services. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 AI Infrastructure Stocks Solving the Power Crisis

As North America embarks on an infrastructure expansion driven by grid modernization, renewable energy growth and data center expansion, companies at the heart of this transformation are drawing investor attention. Two of the most prominent players in this field are Primoris Services Corporation (PRIM) and Quanta Services, Inc. (PWR), both deeply embedded in the construction and engineering networks powering the continent’s energy and utility systems.
Primoris has evolved into a diversified infrastructure contractor with operations across utilities and energy sectors, spanning power delivery, renewables, and natural gas generation, along with expansion in communications and data center construction. On the other hand, Quanta has built a large-scale platform integrating engineering, procurement, and construction services across electric, gas, renewable, and communications infrastructure, expanding through acquisitions and focusing on transmission, grid resiliency, and technology projects with a flexible, decentralized model.
Let us dive deep and closely compare the fundamentals of the two stocks to determine which one is the better investment now.
The Case for Primoris
This Texas-based specialty construction and infrastructure company continues to benefit from strong demand across renewable energy, utilities and communications markets. In the second quarter of 2025, revenue growth was supported by expanding power generation and clean energy projects, while higher utility activity improved margins. The company’s diversified presence across power delivery, renewables and data infrastructure continues to drive stable performance and solid execution across its core segments.
Renewable and power generation markets remain central to the company’s growth strategy. Execution in solar and gas generation projects exceeded expectations in the second quarter, aided by customer demand and favorable market conditions. The company is bidding for more than $2.5 billion in natural gas generation projects and evaluating an additional $20-$30 billion in solar opportunities through 2028, underscoring significant long-term potential. Supportive policy incentives and a growing mix of engineering, procurement and construction work continue to enhance visibility across its clean energy portfolio.
Despite the company’s strong momentum, certain areas continue to face near-term challenges. Activity in the pipeline segment remains subdued as several large-diameter natural gas and liquids projects await final investment approval. Regulatory changes and shifting renewable energy policies are adding some cost and scheduling pressure, creating potential short-term variability in margins and project execution.
A growing backlog continues to strengthen the company’s long-term outlook. Total backlog stood at approximately $11.5 billion at the end of the second quarter of 2025, reflecting a sequential increase of about $100 million. Growth was led by MSA backlog, which expanded more than $600 million, driven by higher power delivery activity within utilities. With steady demand in renewables, power infrastructure and communications, Primoris remains positioned for continued growth into 2026 as it leverages expanded capabilities to capture high-value energy and infrastructure opportunities.
The Case for Quanta
Quanta continues to strengthen its leadership position in utility infrastructure, driven by growing demand for electric transmission, grid modernization and renewable energy connections. The company is benefiting from rising power needs tied to data centers, artificial intelligence and domestic manufacturing expansion. In the second quarter of 2025, strong execution across Electric Power Infrastructure Solutions and Renewable Energy segments supported revenue growth and margin improvement, reflecting consistent customer investment in essential energy and connectivity projects.
The company’s growth momentum remains anchored by large-scale transmission and renewable initiatives. Expanding opportunities in grid hardening, power delivery and high-voltage construction continue to enhance long-term visibility. Quanta’s record backlog of $35.8 billion in the second quarter, supported by $19.2 billion in remaining performance obligations, underscores increasing customer commitments and a multi-year pipeline of work. Key projects such as the Boardman to Hemingway transmission line and various renewable energy programs are expected to support stable growth over the next several years.
Despite steady progress, the company faces some near-term challenges related to project timing and cost dynamics. The Renewable Energy segment saw margin variability due to weather disruptions and labor constraints, while permitting and supply-chain issues continue to affect certain large projects. These factors could lead to short-term fluctuations in profitability, though demand fundamentals remain solid.
Looking ahead, Quanta’s record backlog and expanding scope of work provide a solid foundation for continued growth. The company’s strategic investments in energy transition, grid reliability and communications infrastructure position it well to benefit from sustained spending across utilities and renewable markets. With increasing visibility into long-term revenue streams and disciplined project execution, Quanta remains well-placed to deliver consistent earnings growth and shareholder value through 2026 and beyond.
Stock Performance & Valuation: PRIM vs. PWR
As witnessed from the chart below, year to date, Primoris’ share price performance stands above those of Quanta and the Zacks Building Products - Heavy Construction industry.
Image Source: Zacks Investment Research
Considering valuation, Primoris stock is currently trading at a discount compared with Quanta on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: PRIM vs. PWR
The Zacks Consensus Estimate for PRIM’s 2025 EPS indicates 31.3% year-over-year growth, with the 2026 estimate implying an increase of 9.3%. Its 2025 EPS estimate has remained unchanged in the past 30 days.
PRIM’s EPS Estimate Revision
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PWR’s 2025 EPS implies 17.8% year-over-year growth, with the 2026 estimate indicating an increase of 16.5%. Its 2025 EPS estimate has remained unchanged in the past 30 days.
PWR’s EPS Estimate Revision
Image Source: Zacks Investment Research
The Verdict
Both Primoris and Quanta are well-positioned to benefit from the ongoing wave of infrastructure investment across North America, particularly in grid modernization, renewables and data center development. PRIM continues to perform well with steady execution, margin improvement and a growing backlog supported by strong utility and clean energy demand. However, Quanta stands out for its larger scale, diversified portfolio and stronger visibility in high-voltage transmission and renewable energy projects.
With record backlog, strategic acquisitions and consistent earnings momentum, Quanta is better placed to capture long-term infrastructure opportunities. Primoris carries a Zacks Rank #3 (Hold), while Quanta has a Zacks Rank #2 (Buy), making it the stronger pick for investors seeking exposure to the infrastructure growth theme. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Primoris vs. Quanta: Which Infrastructure Stock Is the Better Buy Now?

Comfort Systems USA, Inc. (FIX) is scheduled to report third-quarter 2025 results on Oct. 23, after the closing bell.
In the last reported quarter, Comfort Systems reported adjusted earnings per share (EPS) of $6.53, beating the consensus mark and rising 74.6% year over year. The strong earnings growth was driven by higher margins across both Mechanical and Electrical segments, supported by strong execution on large, complex projects and favorable pricing. Revenues grew 20% year over year to $2.17 billion, fueled by broad-based demand across technology, industrial and institutional markets, along with strong contribution from modular construction.
Comfort Systems has an impressive record of surpassing earnings expectations, exceeding the consensus mark in the last four quarters. The average surprise over this period is 22.4%, as shown in the chart below.
Image Source: Zacks Investment Research
How Are Estimates Placed for FIX?
The Zacks Consensus Estimate for the third-quarter EPS has increased to $6.20 from $6.10 over the past 30 days. The estimated figure indicates 51.6% growth from the year-ago reported figure. The consensus mark for revenues is $2.16 billion, indicating a 19% year-over-year increase.
For 2025, FIX is expected to register 58.5% EPS growth from that reported a year ago.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for FIX
Our proven model does not conclusively predict an earnings beat for Comfort Systems this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
FIX’s Earnings ESP: Comfort Systems has an Earnings ESP of -8.92%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: FIX currently carries a Zacks Rank of #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape FIX’s Q3 Performance
Comfort Systems continues to benefit from strong demand across technology and industrial markets. Large and complex projects, particularly data centers, are likely to have remained a major growth driver in the third quarter of 2025. Industrial customers are expected to have contributed significantly to the revenue mix, supported by healthy activity in manufacturing and process facilities. With robust pipelines in both technology and industrial sectors, the company is likely to have sustained momentum as customers seek specialized expertise for complex, high-value projects.
The Mechanical segment, which accounted for 75.4% of total revenues in the second quarter, is expected to have driven most of the growth. Steady activity in data centers and industrial facilities, along with stable institutional demand, likely supported the segment’s performance. The Electrical segment, which contributed 24.6% of total revenues in the second quarter, is also expected to have performed well, supported by strong execution on ongoing technology-related and large-scale industrial projects. Continued demand for integrated mechanical and electrical solutions is expected to have strengthened overall project flow during the quarter.
A record-high backlog is expected to have provided visibility and stability to ongoing operations. The company is likely to have benefited from consistent bookings across industrial, institutional and modular construction projects, supporting sustained revenue generation. Service operations are also expected to have remained a stable contributor, providing recurring revenues and helping balance the cyclicality of large projects.
From the margin perspective, Comfort Systems is expected to have benefited from a favorable mix of complex, high-value projects and disciplined project execution. Strategic acquisitions are likely to have added scale and expanded capabilities across regional markets, further enhancing the company’s growth base. Overall, strong demand trends, healthy backlog and continued expansion are likely to have supported steady performance in the third quarter of 2025.
FIX Stock’s Price Performance & Valuation
So far this year, shares of Comfort Systems have gained 95.6% compared with the Zacks Building Products - Air Conditioner and Heating industry’s 1.8% fall and the S&P 500’s rallies of 15.4%, respectively. FIX stock has also outperformed the broader Construction sector's 6.6% rise during the same period. The stock has also outperformed peers such as EMCOR Group (EME), Quanta Services (PWR) and MasTec (MTZ). EMCOR, MasTec and Quanta Services gained 52%, 38.4% and 52.2% so far this year.
Image Source: Zacks Investment Research
Comfort Systems’ shares are currently trading at a forward 12-month price-to-earnings (P/E) ratio of 34.3, a 28.8% premium to the industry average of 26.64.
Image Source: Zacks Investment Research
Furthermore, FIX trades at a clear premium to peers such as EMCOR (25.82X) and MasTec (27.49X), though it remains at a discount to Quanta (36.51X).
Should Investors Consider FIX Stock Now?
Comfort Systems enters the third quarter on strong footing, supported by steady demand across technology and industrial markets, a record backlog and continued strength in high-value project execution. Expanding service operations and recent acquisitions are enhancing scale and diversification, reinforcing the company’s long-term growth potential.
Given the solid fundamentals, consistent execution and visibility into future projects, the stock remains well-positioned for sustained performance. Investors looking for exposure to large-scale infrastructure and technology-driven construction trends may consider Comfort Systems as an attractive long-term opportunity.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Comfort Systems Stock Before Q3 Earnings: Buy Now or Wait for Results?

Investors eyeing a purchase of Quanta Services, Inc. (Symbol: PWR) shares, but cautious about paying the going market price of $440.75/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2028 put at the $340 strike, which has a bid at the time of this writing of $39.80. Collecting that bid as the premium represents a 11.7% return against the $340 commitment, or a 5.2% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to PWR's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $340 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Quanta Services, Inc. sees its shares decline 23% and the contract is exercised (resulting in a cost basis of $300.20 per share before broker commissions, subtracting the $39.80 from $340), the only upside to the put seller is from collecting that premium for the 5.2% annualized rate of return.
Interestingly, that annualized 5.2% figure actually exceeds the 0.1% annualized dividend paid by Quanta Services, Inc. by 5.1%, based on the current share price of $440.75. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to fall 23.01% to reach the $340 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Quanta Services, Inc., looking at the dividend history chart for PWR below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.1% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for Quanta Services, Inc., and highlighting in green where the $340 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2028 put at the $340 strike for the 5.2% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Quanta Services, Inc. (considering the last 249 trading day closing values as well as today's price of $440.75) to be 39%. For other put options contract ideas at the various different available expirations, visit the PWR Stock Options page of StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Agree To Buy Quanta Services At $340, Earn 11.7% Using Options

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Our proprietary system currently recommends Quanta Services (PWR) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this specialty contractor for utility and energy companies a great growth pick right now.
Earnings Growth
Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Quanta Services is 22.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 17.9% this year, crushing the industry average, which calls for EPS growth of 10.5%.
Cash Flow Growth
While cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Quanta Services is 24.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 20%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.9% over the past 3-5 years versus the industry average of 7%.
Promising Earnings Estimate Revisions
Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Quanta Services have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom Line
While the overall earnings estimate revisions have made Quanta Services a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Quanta Services well for outperformance, so growth investors may want to bet on it.
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Quanta Services, Inc. (PWR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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