There is rarely one thing that makes a stock worth buying. An attractive valuation can sit alongside weak sentiment, strong earnings can be offset by rising expenses, and an improving outlook can come with a demanding price tag. A stock becomes more compelling when several indicators begin pointing in the same direction.
Finding those stocks, however, means looking beyond any single metric and seeing how the different pieces fit together. That’s where the TipRanks Smart Score comes in. The data-driven tool brings together a range of market factors to evaluate each stock against indicators that have historically correlated with future outperformance. It then distills that assessment into a simple score ranging from 1 to 10.
At the very top are the “Perfect 10” stocks. Earning that score means a stock has received favorable readings from several of the factors tracked by the Smart Score, giving investors another way to narrow down the market and find names that may deserve a closer look.
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With that in mind, we turned to the Smart Score and found two ‘Perfect 10’ stocks that have earned strong backing from Wall Street analysts. Let’s take a closer look at what has the Street betting on both names.
Quanta Services (PWR)
First on our list of ‘Perfect 10s’ is Quanta Services, a specialized contractor providing infrastructure solutions across the communications, energy, pipeline, renewable energy, and utility markets. The company’s services span the full project lifecycle, including the design, installation, maintenance, and repair of the infrastructure that supports energy and communications networks.
Quanta has operations internationally, but especially in the Anglosphere: in the US, Canada, and Australia. In North America, Quanta has built up the region’s largest craft labor force, capable of tackling some of the world’s most complex infrastructure challenges. Quanta can bring international resources, including manpower and expertise, to bear on local projects. Among Quanta’s capabilities, the company can build out electric power generation, utility services, broadband networks, underground utility conduits, and even concrete construction.
In recent years, Quanta has pursued an active M&A strategy aimed at expanding its range of services and broadening its position beyond utility construction into the wider infrastructure market. Two acquisitions in particular illustrate that strategy. In July 2024, Quanta acquired Cupertino Electric, a California-based provider of integrated turnkey power solutions for the technology sector, in a cash-and-stock transaction valued at $1.54 billion.