Quanta Services (PWR) Demonstrates Strong Value Proposition

3 months ago

John Rotanti

"One company that I think all of my holdings offer a good value proposition, but one I'll just call out is, um, it's in the portfolio, Quanta Services, ticker PWR. So Bloomberg Green published two articles a few months ago discussing the two primary bottlenecks preventing faster buildout of electrical infrastructure in the US and Europe – transformers and skilled craft labor. What did he do? He bought a line college and made at least two acquisitions of transformers manufacturing companies. I read a note from Bernstein saying that in a short period of time through these acquisitions, Quanta now controls 20% of transformer manufacturing in the US, so he solved both bottlenecks."

John highlights Quanta Services' strategic moves to overcome key bottlenecks in the electrical infrastructure space. By acquiring assets in transformer manufacturing and addressing labor shortages through a trade school acquisition, Quanta has bolstered its value proposition and now controls roughly 20% of US transformer production.

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