10 Best Stocks to Buy According to Navellier & Associates

6. Quanta Services Inc. (NYSE:PWR)

Navellier & Associates’ Stake Value: $18,857,853 

Number of Hedge Fund Holders: 56

Quanta Services Inc. (NYSE:PWR) is a leading provider of specialized contracting services for infrastructure and energy. Its work in growing areas like renewable energy, telecommunications, and utilities makes it well-positioned for future growth. Recently, Quanta Services Inc. (NYSE:PWR) has completed the acquisition of Cupertino Electric for approximately $1.54 billion, which includes $1.3 billion in cash and 883,000 shares of Quanta valued at about $225 million. There’s also a potential additional payment of up to $200 million based on financial targets. The deal is expected to boost Quanta Services Inc. (NYSE:PWR)’s growth, cash flow, and earnings per share right away, with projected contributions of $175-$195 million to adjusted core profit and $0.40-$0.50 to adjusted diluted EPS for FY25.

Quanta Services Inc. (NYSE:PWR) landed on the 6th spot of Navellier & Associates’ top 10 stock picks. By the end of the first quarter of 2024, Navellier & Associates held 72,586 shares of Quanta Services Inc. (NYSE:PWR), valued at $18,857,853. This made up 2.32% of their total portfolio, as reported in their regulatory filings.

Artisan Mid Cap Fund stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its fourth quarter 2023 investor letter:

“Along with DexCom, Inc. (NASDAQ:DXCM), notable adds in the quarter included Quanta Services, Inc. (NYSE:PWR) and Jabil Inc. (NYSE:JBL). Quanta provides outsourced skilled labor for maintenance and construction services, primarily to utilities. We have followed the company for over a decade and have witnessed its shift from oil and gas to renewables. The energy transition (solar and wind farms, electric vehicles, etc.) requires investments in the US energy grid to support greater electrification. At the same time, climate change is increasing stress on the existing grid, forcing utilities to increase maintenance spending. Furthermore, Federal incentive programs, such as the Inflation Reduction Act and Bipartisan Infrastructure Act, will help fuel Quanta’s long-term growth given its expertise in transmission and distribution connections as renewable energy infrastructure seeks to connect to the grid. The stock sold off early in the quarter on concerns that higher interest rates would lead to a pullback in renewables investments by utility customers. However, based on our industry research, we think Quanta’s key customers are well resourced and committed to meeting long-term electrification needs via infrastructure investment. We used the selloff as an opportunity to move the position into the CropSM at a more attractive valuation.”