For Immediate Release
Chicago, IL – August 7, 2026 – Zacks Equity Research shares Quanta Services, Inc. PWR as the Bull of the Day and Builders FirstSource, Inc. BLDR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Valero Energy Corp. VLO, Phillips 66 PSX and Par Pacific Holdings, Inc. PARR.
Here is a synopsis of all five stocks:
Quanta Services, Inc. recently reported a record second quarter of 2026 and raised full year guidance as demand remains strong for power generation for the AI Revolution. This Zacks Rank #1 (Strong Buy) is expected to grow earnings and sales in the double digits in 2026.
Quanta Services provides specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. It has comprehensive services, including designing, installing, repairing, and maintaining, through two segments: Electric Infrastructure Solutions and Underground Utility & Infrastructure Solutions.
It has a market cap of $102.7 billion and operates in the United States, Canada, Australia and other global markets.
Quanta Services Beat Again in the Second Quarter of 2026
On July 30, 2026, Quanta Services reported its second quarter of 2026 earnings results and beat on the Zacks Consensus by $0.95. Earnings were $4.24 versus the Zacks Consensus of $3.29.
It was the eighth earnings surprise in a row. Quanta Services has only missed on earnings twice in the last five years: once in 2023 and again in 2024.
Revenue jumped to $9.56 billion from $6.77 billion in the year ago quarter. Electric Infrastructure Solutions revenue rose 44% while Underground Utility and Infrastructure Solutions increased 31% year-over-year.
The Electric segment had operating income margin of 11.5% while the Underground segment operating income margin came in at 9.1%. That exceeded Quanta Services’ expectations in the quarter.
Quanta Services had a record backlog of $53.4 billion at the end of Q2, which supports future growth.
Quanta Services Completes Four Acquisitions
During the second quarter and in the month of July 2026, Quanta Services completed four acquisitions that added approximately 7,400 employees and further strengthened the company’s electrical and mechanical workforce, its front-end services, and fabrication and manufacturing platforms.
It will allow the company to better serve customers’ critical infrastructure needs on utility, power, technology and large load, industrial and energy end markets.
These acquisitions did not materially impact the second quarter financial results, but Quanta expects them to contribute approximately $1.2 billion to $1.4 billion in revenue for the full year 2026.
Quanta Raised Full Year Guidance
Given the record second quarter, acquisitions, and continued momentum in the business, it shouldn’t be a surprise that Quanta Services also raised full-year guidance.
It now expects revenue between $39.3 billion to $39.7 billion, a $4.55 billion increase at the midpoint from last quarter’s guidance.
Earnings are now expected to be between $16.45 and $16.95, up from the prior guidance last quarter of between $13.55 to $14.25.
Analysts Are Bullish on Quanta
Not surprisingly, given the fantastic earnings report and guide higher, the analysts have been revising their earnings estimates higher.
For 2026, seven estimates have been revised higher in the last week, pushing the Zacks Consensus up to $15.94 from $14.27. That Consensus is still under the company’s range of $16.45 to $16.95.
The Most Accurate Estimate for 2026, which is the most recent estimate, is calling for $16.64, however, which is within Quanta’s guidance range.
The Zacks Consensus of $15.94 is earnings growth of 48.3% as Quanta only made $10.75 last year.
The analysts are bullish on 2027 as well. Seven estimates have been revised higher for next year, pushing the Zacks Consensus up to $18.51. That’s another 16.1% earnings growth.
Shares of Quanta Services Sell Off in the Last Three Months: Buying Opportunity?
Shares of Quanta Services have been on a tear the last five years, up 623% to all-time highs.
But over the last three months, Quanta has pulled back. Shares are down 12.1% in the last 90 days.
Is this pullback a buying opportunity?
Quanta Services is still an expensive stock. It trades with a forward price-to-earnings (P/E) ratio of 42.9. A P/E ratio is usually at 15 or under to be considered a value.
But investors are buying it for the growth. Sales are expected to jump 36.5% this year.
For investors looking for a high growth, AI infrastructure company that is executing, Quanta Services should be on your short list.
Builders FirstSource, Inc. is caught in a four-year housing recession and is waiting for it to end. Earnings of this Zacks #5 (Strong Sell) are expected to fall another 54.3% this year.
Builders FirstSource is the largest supplier of structural building products, components and services to the professional homebuilding industry for new residential construction and repair as well as remodeling.
It operates 565 distribution and manufacturing locations in 43 states and in 91 of the top 100 Core Based Statistical Areas (CBSAs).
Builders FirstSource produces factory-built roof and floor trusses, wall panels, vinyl windows, custom millwork and trim, manufactured and semi-custom modular homes, as well as engineered wood that it designs and cuts specifically for each home. It also distributes a wide range of building products, including lumber, sheet goods, windows, doors, millwork and specialty items.
Builders FirstSource Misses on Earnings in the Second Quarter of 2026
On July 30, 2026, Builders FirstSource reported second quarter 2026 results and it missed on the Zacks Consensus by $0.12. Earnings were $1.17 versus the consensus of $1.29.
This was the company’s third earnings miss in a row.
Sales fell 8.8% year-over-year to $3.9 billion primarily due to a lower housing starts environment and related headwinds. Translation, fewer houses are being built compared to 2025.
“We remain focused on the factors within our control, including managing the business with discipline, and leveraging both our technology capabilities and our value-added solutions,” said Peter Jackson, CEO.
Housing Is Not Expected to Rebound in 2026
Builders FirstSource provided some assumptions for 2026 in terms of guidance.
Within the company’s geographies, Single Family starts are projected to be down mid- to high- single digits, Multi-Family starts are projected to be down mid-single digits, and Repair & Remodel activity is projected to be down 1%.
It guided for 2026 net sales between $14 billion and $14.8 billion. The Zacks Consensus is looking for $14.3 billion, which is a decline of 5.7% from 2025 when sales were $15.2 billion.
Analysts Cut Earnings Estimates on Builders FirstSource for 2026 and 2027
Given that the housing market is not expected to bounce back in 2026, it’s not a surprise that the analysts are cutting earnings estimates for 2026 and 2027.
Six estimates were cut in the last week for 2026 pushing the Zacks Consensus down to $3.15 from $4.13. That’s an earnings decline of 54.3% as Builders FirstSource made $6.89 in 2025.
It would also be the fourth year in a row that earnings decline, if it holds. Earnings fell 22% in 2023, 20.8% in 2024, and 40.4% in 2025.
However, for 2027, analysts see the beginning of a turnaround. While six estimates were also cut for 2027 in the last week, pushing the Zacks Consensus down to $4.28 from $5.67, that is earnings growth of 36%.
Shares of Builders FirstSource Tumble to 4-Year Lows
Shares of Builders FirstSource have struggled to hold onto the big gains from the pandemic, when building was booming.
Over the last year, the shares have tumbled 45%.
Are they a deal?
Builders FirstSource is still trading with a price-to-earnings (P/E) ratio of 24 because, even though the shares have fallen, so have the earnings. It’s not cheap on a P/E basis. A P/E of 15 or under usually indicates value.
Builders FirstSource is shareholder friendly. While it doesn’t pay dividends, the company has had a massive share repurchase authorization that was started in August of 2021.
Since inception of that authorization, the company has repurchased 102.6 million shares, or 49.7% of its total shares, at an average price of $81.26 for a total of $8.3 billion.
It has $500 million left on the authorization.
Many believed the housing industry would start its recovery in 2026 but it didn’t happen. For investors interested in getting in, you might want to wait for Builders FirstSource’s earnings estimates to begin to rise again.
Additional content:
Valero Stock: Buy at a Premium or Wait for a Better Entry Point?
Valero Energy Corp. is currently considered expensive on a relative basis, with the stock trading at a 6.44x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 5.77x.
Two other players belonging to the same space are Phillips 66 and Par Pacific Holdings, Inc. While PARR is currently trading at 5.37x trailing 12-month EV/EBITDA, PSX trades at roughly 14.07x on the same basis.
Such a premium valuation often signals strong market confidence in Valero Energy’s prospects. However, this elevated price warrants a thorough assessment of the company’s fundamentals, growth potential and prevailing market conditions to determine whether it is justified.
Valero Energy's Advantageous Refining Business
West Texas Intermediate (“WTI”) oil is currently trading at more than $75 per barrel, according to data from Oilprice.com. The price, although high, is still significantly down from more than $100 per barrel reached in May this year. Valero Energy, like Phillips 66 and Par Pacific, is likely to gain from the current relatively softer crude pricing environment. This is because VLO, a leading refining company, can now purchase oil at a lower cost, enabling the production of end products. Thus, Valero Energy, which generates the lion's share of its profits from its refining activities, is likely to benefit.
Regarding the company’s access to diverse crude feedstocks, Valero has an advantage because its Gulf Coast refineries can buy crude oil from many low-cost sources, including the United States, Canada and Venezuela. This gives the company more flexibility to purchase cheaper oil, which helps keep refining costs low and can boost profits when competitors have fewer sourcing options.
VLO Can Lean on Its Strong Balance Sheet
Management ended the June quarter of 2026 with a net debt-to-capitalization of just 11%. The leading refining company added $2.1 billion to its cash balance during the June quarter, making its financial position even stronger. It also reported $5.3 billion of available liquidity excluding cash, providing significant financial flexibility.
Thus, the company can lean on its balance sheet to combat an uncertain business environment, reflecting its relatively stable business model compared to other players with a weaker balance sheet. Valero Energy is also witnessing upward earnings estimate revisions for 2026 over the past seven days.
Time to Bet on the Stock?
Valero Energy, with 14 refineries and a combined throughput capacity of roughly 3 million barrels per day, has also witnessed upward earnings estimate revisions for 2026 over the past seven days.
Backed by all the positive developments, VLO has jumped 128% over the past year, outperforming the industry’s 73.6% rally. PARR and PSX have gained 157.7% and 69.8%, respectively, in the same period.
While VLO's stock has outperformed the industry, it appears relatively overvalued as reflected in the valuation snapshot above. This reflects investors’ strong preference for the stock, possibly due to its flexibility to choose crude as input from several sources, which makes its business quite economical. Thus, investors may consider buying VLO despite its premium valuation. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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