Why Quanta Services Stock Is Powering Higher This Week
Key Points
Citigroup hiked its price target on Quanta stock this week.
Quanta reported strong Q1 2026 financial results yesterday.
Shares of Quanta are changing hands at a premium to their historical valuation.
- 10 stocks we like better than Quanta Services ›
Poised to end April on a bullish note, Quanta Services (NYSE: PWR) stock has soared over the past few days. Thanks to the stock receiving an upwardly revised price target on Monday and the company reporting strong first-quarter 2026 financial results yesterday, investors are eager to click the buy button on this infrastructure stock.
According to data provided by S&P Global Market Intelligence, shares of Quanta are up 16.5% from the end of trading last Friday through the close of yesterday's market session.
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One firm suspects this stock will soar
Maintaining a buy rating, Citigroup hiked its price target on Quanta stock Monday to $733 from $640. Based on Quanta's shares closing at $624.84 last Friday, the upwardly revised price target implied an upside of 17.3%.
Charging past analysts' expectations that it would report $6.99 billion, Quanta posted Q1 2026 sales of $7.87 billion on Thursday. And it wasn't only at the top of the income statement where Quanta provided a surprise. The company reported adjusted diluted earnings per share (EPS) of $2.68 -- notably higher than the $2.03 that analysts had anticipated.
The cash flow statement also provided investors with a reason to celebrate. Quanta reported Q1 2026 free cash flow of $184.4 million, which is 56.6% higher than the $117.8 million that it reported during the same period in 2025.
The company's auspicious 2026 outlook provided investors with even more reasons to load up on Quanta stock. Management projects 2026 revenue of $34.7 billion to $35.2 billion, representing year-over-year growth of more than 22%.
Is it too late to plug Quanta stock into your portfolio?
With Quanta stock trading at about 99.8 times trailing earnings, a premium to its five-year average P/E of 44.7, investors may want to wait for a pullback before adding it to their holdings. Fortunately, for those enthusiastic about infrastructure stocks such as Quanta, there are plenty of other options to consider.
Should you buy stock in Quanta Services right now?
Before you buy stock in Quanta Services, consider this:
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Citigroup is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Quanta Services. The Motley Fool has a disclosure policy.
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