Quanta Services Inc (NYSE:PWR) Emerges as a Top Minervini Trend Template Candidate

Infrastructure services provider Quanta Services Inc (NYSE:PWR) has become a notable candidate for investors using the Mark Minervini Trend Template along with high growth momentum screening. This approach finds equities showing both solid technical momentum and strong fundamental growth traits, concentrating on stocks trading close to 52-week highs with improving earnings, increasing profit margins, and better relative strength compared to the broader market.

Technical Strength and Trend Compliance

Quanta Services shows solid agreement with Minervini's technical standards, which highlight stocks in definite stage 2 uptrends. The company's shares now trade significantly above important moving averages, with the price located above both the 150-day ($330.77) and 200-day ($329.94) simple moving averages. Furthermore, these moving averages are themselves moving up, confirming continued institutional accumulation.

The stock displays notable momentum traits relative to its past trading range. Now trading at $389.64, shares are about 72% above their 52-week low of $227.08 while staying within 8% of their 52-week high of $424.94. This placement meets Minervini's rule that stocks trade within 25% of their yearly highs, showing solid momentum without being overextended.

Relative strength stays especially strong with a score of 83, meaning the stock performs better than about 83% of the broader market. This measure is vital within the Minervini framework as it finds market leaders that often keep performing well during bullish periods.

Fundamental Growth Metrics

Along with technical strength, Quanta Services shows the fundamental improvement that growth investors want. The company has reported outstanding earnings growth with EPS rising 30.7% year-over-year on a trailing twelve-month basis. Quarterly performance reveals even clearer improvement with recent quarters showing growth rates from 21-44%.

Revenue growth supports this earnings rise, with the company reporting 18.3% year-over-year revenue growth on a TTM basis. The latest quarter showed especially solid momentum with 21.1% year-over-year sales growth. This pairing of top-line growth and bottom-line gains points to scalable business operations instead of just cost-cutting producing profits.

Profit margins have shown considerable gains, increasing from 2.3% two quarters ago to 3.4% in the most recent quarter. This margin growth shows operational efficiency improvements and pricing ability within Quanta's infrastructure services markets.

Earnings Quality and Revisions

The quality of Quanta's growth is supported by reliable earnings surprises, with the company exceeding EPS estimates in each of the previous four quarters by an average of 4.3%. Analyst opinion stays positive with forward estimates being adjusted up by 2.1% for next year's EPS and 2.5% for revenue over the past three months. These adjustments show ongoing belief in the company's growth path among professional analysts.

Free cash flow production has been especially notable, with FCF per share increasing 91.7% year-over-year to $9.12. Solid cash flow production gives financial room for continued investment and possible shareholder returns.

Technical Analysis Overview

Based on ChartMill's technical report, Quanta Services gets 8 out of 10 on technical rating, showing solid performance across both short and long-term timeframes. The long-term trend stays positive while the short-term trend displays neutral traits, hinting at possible consolidation before a potential continuation.

Important support levels are present between $372-379, made by a mix of trendlines and moving averages, with extra support at $262 and $241. Resistance is seen near $392, which the stock is now nearing. The setup quality gets 5 out of 10, meaning that while technicals are solid, the present volatility may need patience for best entry points.

Investment Considerations

For investors using the Minervini approach, Quanta Services offers a notable case joining technical strength with fundamental improvement. The stock's location above rising moving averages, solid relative strength, and closeness to 52-week highs meet the trend template needs. At the same time, improving earnings growth, growing profit margins, and positive estimate adjustments match high growth momentum traits.

The stock's performance within the construction and engineering industry is especially significant, performing better than 66% of industry peers. This sector leadership often comes before continued outperformance as institutional investors build positions in industry leaders.

Detailed technical analysis shows extra details for timing-aware investors, including particular support and resistance levels that could inform entry and exit choices.

Discovering Similar Opportunities

Investors looking for other high-growth momentum stocks fitting the Minervini Trend Template standards can review additional candidates using our specialized screening tool. This screen methodically finds companies displaying both technical strength and fundamental growth traits.

Disclaimer: This analysis is given for informational and educational reasons only and does not form investment advice, recommendation, or endorsement of any security. Investors should do their own research and talk to a qualified financial advisor before making investment decisions. Past performance is not a guarantee of future results.