MYRG

Iberdrola S.A. (IBDRY) has returned 7.9% year-to-date, outperforming the Utilities sector average of -6.4%. The stock holds a Zacks Rank #2 (Buy) with improving analyst sentiment, as consensus earnings estimates have risen 2.1% over the past 90 days. MYR Group (MYRG) has also outperformed significantly with 33.9% year-to-date returns and a Zacks Rank #1 (Strong Buy).

MYR Group (MYRG) has been upgraded to Zacks Rank #1 (Strong Buy) due to upward trends in earnings estimates. The electrical construction services provider is expected to earn $12.43 per share for fiscal year 2026, with analysts raising consensus estimates by 8.7% over the past three months. The upgrade positions the stock in the top 5% of Zacks-covered stocks, suggesting potential near-term price appreciation.

MYR Group's Transmission & Distribution segment reported 10% revenue growth to $1.06B in H1 2026 with operating income jumping 32.6%, driven by strong demand for grid upgrades, electrification, and data center infrastructure. The company maintains a $1.27B backlog and benefits from structural trends supporting long-term T&D spending. Industry peers Quanta Services and MasTec also reported strong growth in their respective power/electric segments.

Quanta Services (PWR) has delivered impressive 64.6% YTD returns driven by strong infrastructure demand, record $53.4B backlog, and strategic acquisitions. However, elevated valuation at 36.92X forward P/E—significantly above industry average of 23.67X—raises concerns about sustainability. The company maintains a Hold rating despite favorable long-term prospects, as much of expected growth appears already priced in.