Quanta: Valuation Is Off The Grid

Caffital Research
1.67K Followers

Summary

  • Quanta Services has a strategy of constant acquisitions leading to good long-term growth.
  • The company has a diverse portfolio of energy infrastructure solutions and a well-diversified client base as a result of constant acquisitions.
  • The stock price has rallied significantly in the past years - after the rally, my DCF model estimates the stock to be overvalued, constituting my sell rating.

High Voltage Electric Power Lines At Sunset

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Quanta Services (NYSE:PWR) provides energy infrastructure solutions. The company has had a strategy revolving around constant acquisitions, boosting the company's long-term growth to a very good level. After a massive stock price run, though, I believe the stock is currently overvalued; I have a

This article was written by

1.67K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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