10 Best Engineering Stocks to Buy for 2025

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1. Quanta Services, Inc. (NYSE:PWR)

Number of Hedge Fund Holders: 58

Quanta Services, Inc. (NYSE:PWR) is a contracting services company that delivers infrastructure solutions for communications, utilities, pipelines, renewable energy, and other industries. Its Renewable Energy segment includes engineering, repowering, repair, and new construction services.

The company reported fiscal Q3 2024 revenue of $6.5 billion. It also generated a healthy cash flow in the quarter, with cash flow from operations at $739.9 million and free cash flow of $539.5 million. Quanta Services, Inc. (NYSE:PWR) is seeing positive momentum across its portfolio of solutions with increased demand for and tightening of power generation capacity and the significant power grid upgrades and enhancements required to facilitate load growth.

During fiscal Q3 2024, the company recapitalized the business after its acquisition of Cupertino. This initiative, along with earnings and cash flow performance, provided it with a strong balance sheet and ample liquidity to support its organic growth expectations and the opportunistic investment of capital to generate incremental returns for its stockholders.

Quanta Services, Inc., (NYSE:PWR) holds a competitive advantage due to its portfolio approach and focus on craft-skill labor, which allows it to manage risks and shift resources across geographies and service lines.

Overall, PWR ranks first among the 10 best engineering stocks to buy for 2025. While we acknowledge the potential of engineering stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PWR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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