According to our research, a number of megatrends are driving our future. Within these overarching themes are companies that are capable of exploiting these changes in technology, consumer preferences, demographics, and environmental sustainability. These changes can lead to significant increases in their total markets, earnings trajectories and market capitalizations. We believe Quanta Services is one of these companies.
Quanta Services (PWR)
- PWR is a core holding for energy transition portfolios as the go-to “picks & shovels” pure play for domestic energy transmission infrastructure. As the leading specialty construction services franchise in this field, PWR aligns with the electrification of everything within the climate sustainability megatrend.
- Secular growth outlook underpinned by numerous durable trends:
- Grid modernization and hardening
- Renewables integration
- EV penetration plus other broad-ranging electrification initiatives driven by decarbonization goals
- 5G network buildout
- Rising customer outsourcing
- Blattner acquisition pushes PWR into solar, wind and EV infrastructure
- Infrastructure Stimulus – The recently passed infrastructure plan will accelerate the strengthening U.S. electric grid. We also believe some form of the Build Better Back legislation (BBB) will eventually become an incremental driver of electrification.
- Acceleration & Expansion of Clean Energy & Infrastructure Opportunity Set – Following several weather/fire events over the past several years, significant investment is being made to harden power grids to be better prepared for severe weather events in the future. Further large- scale investment in the power and utility grids will be required as EV adoption, energy electrification, carbon emission reduction and increasing renewables generation initiatives continue to unfold.
- Communications and 5G – PWR identifies the rollout of 5G wireless networks in North America as needing ~$275B of infrastructure investment that the company is well positioned for, given its expertise in both telecom and electric power infrastructure (both of which are expected to be necessary as new equipment will need to be installed above power lines).
The Future Fund LLC is an SEC-registered investment advisor. Opinions are as of 1/10/2022 and subject to change without notice.
About The Future Fund
The Future Fund LLC is an SEC-Registered Investment Advisor. We’ve identified 10 megatrends we believe are the most influential multi-year secular growth opportunities shaping the future. Our focus is on companies that can change the world by capitalizing on these fundamental changes in their markets.
Nothing contained herein constitutes tax, legal, insurance or investment advice, or the recommendation of or an offer to sell, or the solicitation of an offer to buy or invest in any investment product, vehicle, service or instrument. Such an offer or solicitation may only be made by delivery to a prospective investor of formal offering materials, including subscription or account documents or forms, which include detailed discussions of the terms of the respective product, vehicle, service or instrument, including the principal risk factors that might impact such a purchase or investment, and which should be reviewed carefully by any such investor before making the decision to invest. Future Fund information may include statements concerning financial market trends and/or individual stocks, and are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment which may differ materially, and should not be relied upon as such. The investment strategy and broad themes discussed herein may be inappropriate for investors depending on their specific investment objectives and financial situation. Information contained in the material has been obtained from sources believed to be reliable, but not guaranteed. You should note that the materials are provided “as is” without any express or implied warranties.
Past performance is not a guarantee of future results. All investments involve a degree of risk, including the risk of loss. No part of Future Fund’s materials may be reproduced in any form, or referred to in any other publication, without express written permission from Future Fund. Links to appearances and articles by Gary Black, whether in the press, on television or otherwise, are provided for informational purposes only and in no way should be considered a recommendation of any particular investment product, vehicle, service or instrument or the rendering of investment advice, which must always be evaluated by a prospective investor in consultation with his or her own financial adviser and in light of his or her own circumstances, including the investor’s investment horizon, appetite for risk, and ability to withstand a potential loss of some or all of an investment’s value. Investing is subject to market risks. Investors acknowledge and accept the potential loss of some or all of an investment’s value. Views represented are subject to change at the sole discretion of The Future Fund LLC. The Future Fund LLC does not undertake to advise you of any changes in the views expressed herein.
Future Fund, its clients and its related persons, including Mr. Black, may hold financial interests in securities or issuers discussed in this material. However, any discussion of securities or issuers included in this material is not a recommendation to buy, sell or hold any particular security.
© Copyright 2021 The Future Fund LLC. All rights reserved.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS