Quanta Services Inc (NYSE:PWR) Emerges as a Top High-Growth Stock with Strong Technical Breakout Potential

Quanta Services Inc (NYSE:PWR) has become a top choice in a screen designed to find high-growth stocks with promising technical breakout patterns. The screening process uses both fundamental and technical analysis, targeting companies with strong growth indicators, good profitability, and stable finances, while also showing a positive technical setup for potential upward movement. This combined method helps identify stocks with solid business performance and signs of breaking out or stabilizing in a way that hints at future price gains.

Fundamental Strength Points to Growth

Quanta Services works in the infrastructure solutions industry, offering essential services to sectors like electric power, renewable energy, and underground utilities. The company's fundamentals match growth investing standards, as seen in its fundamental analysis report:

• Growth Rating (7/10): PWR has shown strong past growth, with earnings per share (EPS) rising by 30.7% over the last year and revenue increasing at an 18.3% yearly rate. Future estimates look positive, with expected EPS growth of 14.7% and revenue growth of 11.5% per year.
• Profitability (7/10): The company maintains good margins, with a return on invested capital (ROIC) of 7.94%, better than 63% of its competitors in the Construction & Engineering industry. Operating margins have also improved steadily.
• Financial Health (6/10): While debt levels are reasonable (Debt/Equity of 0.59), the company’s Altman-Z score of 4.97 shows low bankruptcy risk, and liquidity metrics are strong.

These fundamentals indicate that Quanta Services is well-suited to benefit from rising demand for infrastructure upgrades, especially in renewable energy and grid resilience, a sector with long-term growth potential.

Technical Setup Indicates Possible Gains

From a technical standpoint, PWR’s technical analysis report reveals a positive setup:

• Strong Long-Term Trend: The stock is in a clear upward trend, trading above key moving averages (50-day, 100-day, and 200-day SMAs), with the long-term trend rated as positive.
• Stabilization Near Highs: After a significant rise over the past year (+49%), PWR has been holding steady between $378 and $425, reducing volatility and preparing for a possible breakout.
• Support Levels Offer Protection: Key support zones at $387.34 and $257.18 provide clear levels for managing risk if the stock declines before continuing its upward path.

The mix of a high technical rating (10/10) and a favorable setup rating (8/10) suggests PWR could see further gains if it breaks out of its recent range.

Why These Criteria Are Important

As explained in our introduction to growth investing, picking successful growth stocks requires more than just strong fundamentals, it also needs positive price action. Stocks with high growth ratings but weak technicals may lack momentum, while those with strong charts but poor fundamentals could see short-lived rallies. PWR’s blend of rising earnings, sector growth, and a bullish technical structure makes it an attractive option for investors looking for growth with a strategic entry point.

Find More Growth Stocks with Strong Setups

For investors interested in similar opportunities, our Strong Growth Stocks with Good Technical Setup Ratings screen offers more high-potential stocks that meet these criteria.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.