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  • From a 61 to a 78: Why Quanta Services Is Back on the AI Buy List

From a 61 to a 78: Why Quanta Services Is Back on the AI Buy List

👩‍⚖️ Plus, a congress buy signal

🧠 The Signal Brief - AI Stock Insights & Picks

Welcome back to AltIndex’s weekly update. Each week, we spotlight a stock making moves in our AI rankings.

The stock of the day today is an old favorite, but it’s back for new reasons. Even if you haven’t checked in on engineering and constructions stocks recently, you still may have heard of it. We look at fundamental and alternative data on the stock below.

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📈 Top AI Scorers of the Week 

You may remember Quanta Services from earlier this summer—it had quite high AI ratings for a while there, but then dropped to a 61/100 rating seemingly out of nowhere.

But since then, Quanta (PWR) has been on an absolute tear in the rankings, climbing from a 61 all the way to a 78/100 over the course of two and a half months.

Here’s why our AI model thinks it’s a buy again.

Stock spotlight: Quanta Services (SERV)

Quanta Services, Inc. is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric power, natural gas, and telecommunications industries. The company operates across North America and spans several areas, including infrastructure planning, design, installation, repair, and maintenance services.

Notable PWR narratives from AltIndex’s news aggregator:

The data:

  • Revenue: $6.77 billion last quarter, which is a 21.07% increase YoY (and a 8.66% increase QoQ).

  • Net income: At $229 million last quarter, Quanta’s net income is up 21.84% YoY and up 58.92% QoQ.

  • Analyst rating: 76% buy

Alt data from the past few months:

  • Job listings ↑ 50%

  • Employee business outlook ↑ 91%

  • Web traffic ↑ 6%

  • Insider selling over the past few months

The verdict:

AI score: 78buy signal.

Current price: $387.90

Price prediction: $463.01 (19.6% upside)

Bottom line: Quanta Services exhibits strong revenue and net income growth, signaling robust operational performance despite the concerning decline in EBITDA. The high P/E ratio warrants caution, as it may indicate overvaluation risks. Technically, the stock shows a bullish trend supported by a rising SMA10, although the high RSI warrants caution of a potential short-term pullback.

Given the combination of these indicators, Quanta Services appears to offer promising long-term potential, despite short-term valuation concerns. Investors should consider this stock cautiously, balancing the strong growth indicators against the high valuation metrics.

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🐦️ Tweet of the Week

👋 See You Next Week

That’s it for today. Hope you found these signals helpful and/or interesting.

Have a great weekend, and happy trading.
— Brandon and Blake

The stock picks and rankings provided by AltIndex are designed solely for informational use. They are not to be taken as investment guidance or a suggestion to purchase or sell any form of security. These rankings are the outcome of smart algoritms that are estimating future performance based on fundamental and alternative data analysis. We strongly advise that before you make any investment choices, you should thoroughly consider a variety of information sources and consult with a qualified financial advisor. It's important to remember that all investment activities come with inherent risks, and the historical performance does not assure future results or returns.