Strong Operational Momentum Drives Quanta Services’ (PWR) Full-Year Outlook Upgrade

Reaves W H & Co Inc's second-quarter 2026 investor letter reports a 10.55% increase for its "Reaves Long Term Value Wrap Strategy," outperforming the MSCI USA Infrastructure Index's 6.31% decline. The letter can be downloaded here. Cash distributions grew 6.7% in the quarter compared to Q2 2025. Despite geopolitical uncertainty, investor sentiment remained strong. AI expansion benefits companies in construction, connectivity, and infrastructure, especially in utility, communication, engineering, electrical, and power sectors. The strategy's performance benefited from investments across the AI infrastructure ecosystem and support for physical infrastructure supporting AI at scale. Although risks persist, the long-term investment case for many companies remains strong, positioning the strategy for durable growth, increasing dividends, and attractive long-term returns. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Reaves Long Term Value Wrap Strategy highlighted Quanta Services, Inc. (NYSE:PWR). Quanta Services, Inc. (NYSE:PWR) is a leading infrastructure services company that provides engineering and construction services to utilities, energy infrastructure, and telecommunications projects, which contributed positively to the fund's performance this quarter. On September 16, 2026, Quanta Services, Inc. (NYSE:PWR) closed at $619.28 per share. Over the past month, Quanta Services, Inc. (NYSE:PWR) declined 5.67%, but its shares are up 59.97% over the past year. Quanta Services, Inc. (NYSE:PWR) has a market capitalization of $93.1 billion, and its stock has traded within a 52-week range of $376.07 to $788.75.

Reaves Long Term Value Wrap Strategy stated the following regarding Quanta Services, Inc. (NYSE:PWR) in its Q2 2026 investor letter

"Quanta Services, Inc. (NYSE:PWR): Quanta outperformed during the quarter following first quarter results that showed broad based acceleration across its business, prompting management to raise full year earnings guidance and reaffirm its expectation to double earnings by 2030. As the largest specialty utility solutions provider, Quanta remains a primary bottleneck through which industry capital spending must flow to support significant power demand growth, data center energization timelines and grid reliability investment."

Quanta Services, Inc. (NYSE:PWR) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 100 hedge fund portfolios held Quanta Services, Inc. (NYSE:PWR) at the end of the second quarter, compared to 94 in the previous quarter. While we acknowledge the potential of Quanta Services, Inc. (NYSE:PWR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In a previous article, we discussed Quanta Services, Inc. (NYSE:PWR) and highlighted analysts' perspectives on its potential as a promising AI power stock. In its Q2 2026 investor letter Baron Asset Fund highlighted Quanta Services, Inc. (NYSE:PWR) as an attractive, long-term growth holding. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.