The shift to a lower carbon energy mix is great news for companies involved in renewable energy generation and the modernization of the electric grid, suggests Tony Daltorio, editor of Market Mavens.

One company benefiting from the global energy transition is Quanta Services (PWR), which provides infrastructure solutions for the electric power, renewable energy, oil and gas, and communications industries.

Quanta is already a major player in the energy transition sector here in the U.S. In July, the company was selected to be a lead provider in the rollout of a national electric vehicle charging network. The company will provide turnkey engineering, construction, and program management solutions for the project.

Not only does Quanta Services have a strong macroeconomic tailwind behind it, but it also has a very sharp management, which has made some extremely shrewd acquisitions.

For example, in 2018, Quanta Services bought Northwest Lineman College, which delivers training programs for those in the utility and electricity sectors. Because the industry is short of skilled workers as the employee base ages, the college is a way Quanta can obtain skilled workers for the various infrastructure services it offers.

In October 2021, Quanta made a strategically sound move I really like, with the purchase of Blattner Holding Company, which now accounts for the majority of Quanta's exposure to the renewable energy sector. The company has a market share of approximately 30% for wind and 10% to 15% for solar, positioning it at the top of the renewable EPC industry.

In summary, Quanta Services is well-positioned to capitalize on evolving energy trends, and it's clear that efforts to decarbonize the global economy will support demand for Quanta's products and services.

Goldman Sachs energy equity research analyst Ati Modak said Quanta was still a "best-in-class equity expression" of companies with exposure to the megatrends in the electric grid modernization and renewable generation markets. I totally agree, making Quanta a buy.

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