4-Star Stocks Poised to Pop: Quanta Services

Market-trouncing returns could be written in these stars.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 18, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy infrastructure company Quanta Services (NYSE: PWR) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Quanta's business and see what CAPS investors are saying about the stock right now.

Quanta facts

Headquarters (Founded) Houston (1997)
Market Cap $5.5 billion
Industry General contractors
Trailing-12-Month Revenue $5.7 billion
Management CEO James O'Neil, III (since May 2011)
CFO Derrick Jensen (since May 2012)
Return on Equity (Average, Past 3 Years) 5.5%
Cash/Debt $172.9 million / $39.0 million
Competitors EMCOR Group
Integrated Electrical Services
MYR Group

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 489 members who have rated Quanta believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, Thekills, touched on the several tailwinds working in Quanta's favor:

Interesting diversified [infrastructure] play. Likely to strongly profit from smart grid trend. Also well positioned to profit from trend to stronger use of Natural Gas in the US. Likely to win many project[s]. Likely to profit from low interest rate environment. Utilities will have some nice orders for them. Think backlog will improve.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Quanta may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.