The ancillary trade, known as the “picks and shovels” trade, has historically been a profitable investment strategy, focusing on the infrastructure behind exciting industries like AI. Quanta Services (PWR), a Texas-based infrastructure provider, offers an opportunity in this space, boasting a market cap of $63 billion and a 33.8% stock increase in 2025.

Quanta Services has maintained steady growth, with revenue and earnings growing at CAGRs of 13.45% and 17.97% respectively over the last decade. In Q3 2025, the company reported revenues of $7.6 billion, with core electric segment sales of $6.2 billion, showing annual growth rates of 18.5%.

Earnings for the quarter were $3.33 per share, a 22.4% increase from the previous year, marking the ninth consecutive earnings beat. While net cash flow from operating activities declined annually, Remaining Performance Obligations (RPO) showed strong growth of 34.5% year-over-year.

Quanta expects revenue between $27.8 billion and $28.2 billion in 2025, with earnings per share ranging from $6.53 to $7.02, reflecting yearly growth rates of 18.3% and 12.4% respectively. With a focus on data center power requirements and collaborations with key industry players like American Electric Power (AEP), Quanta is positioned for growth.

The company’s strategic acquisitions, robust financials, and skilled labor force contribute to its ability to capitalize on trends in utilities, clean energy, and construction. Analysts rate PWR stock a “Moderate Buy,” with a mean target price of $478.64, suggesting a 13.4% upside potential.

Read more at Yahoo Finance: This Under-the-Radar AI Company Could Be the Best Stock You Buy in 2026.