Quanta Services (PWR): Serves the electric power, oil and natural gas industries

Quanta Services, based in Houston, Texas, provides services to the electric power, oil and natural gas industries. The company has 24,500 employees.

Wall Street expects slow and steady revenue growth, from $7.5 billion in 2015 to over $8.1 billion in 2018. Revenue growth is coming from all segments of the company, notably from acquisitions, electric power projects and a continued recovery in the natural gas industry.

The stock is undervalued, with its 2017 P/E at the bottom of its long-term P/E range, which often reaches 30 to 40 and higher. The long-term debt-to-capitalization ratio is very low at 13%.

This industrial stock does not have a glamorous story. It’s simply a very undervalued aggressive growth stock with a low debt ratio. PWR is currently building a base between 34 and 37, after a 24% post-election run-up.

Quanta was originally recommended by Crista Huff in Cabot Undervalued Stocks Advisor (just before the election) and her readers are now sitting on a profit of 22%. For more details, click here.

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