Got $10,000? This Quiet Electrification Stock Up 100%+ Could Still Be a No‑Brainer "Buy and Never Sell."

Quanta Services (NYSE: PWR), a leading builder of energy infrastructure, has seen its stock more than double to record highs over the past 12 months. Let's see why this oft-overlooked energy play is beating the market, and why it could turn a $10,000 investment into a lot more money over the long term.

What does Quanta Services do?

Quanta designs, builds, upgrades, and maintains electric transmission lines, substations, distribution networks, oil and gas pipelines, renewable energy infrastructure, and data center power systems. It mainly helps utilities and energy companies expand their infrastructure.

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Quanta was founded in 1997, and it expanded aggressively by acquiring more than 200 other infrastructure companies across North America and Australia. It generates more than three-quarters of its revenue in the United States.

Most of Quanta's revenue and growth comes from its Electric Power Infrastructure segment, which provides grid modernization, renewable interconnection, transmission expansion, and data center electrification services. A smaller percentage comes from its Pipeline and Industrial segment, which handles natural gas pipelines, oil infrastructure, and industrial energy projects.

How fast is Quanta Services growing?

From 2021 to 2025, Quanta's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew at CAGRs of 22% and 23%, respectively. Its year-end backlog more than doubled from $19.3 billion in 2021 to $44 billion in 2025.

From 2025 to 2028, analysts expect its revenue and adjusted EBITDA to grow at CAGRs of 15% and 17%, respectively. That growth should be driven by the rapid expansion of the power-hungry cloud infrastructure, artificial intelligence, data center, and electric vehicle markets; ongoing upgrades for aging electrical grids across the U.S., and new transmission lines for wind and solar energy solutions.

U.S. utilities could spend up to $1.4 trillion over the next five years to support the cloud and AI boom, according to a recent PowerLines report. Those companies will allocate roughly half that spending to transmission infrastructure, Quanta's core business, so its backlog should keep swelling.

Why is it a great stock to buy and hold forever?

With an enterprise value of $93 billion, Quanta still looks reasonably valued at 27 times this year's adjusted EBITDA. It only pays a tiny forward dividend yield of 0.07%, but its low trailing payout ratio of 6% gives it plenty of room for future increases. So if you're looking for a simple way to profit from the long-term demand for more power, Quanta checks all the right boxes.

Leo Sun 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.