We recently published a list of 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we are going to take a look at where Quanta Services, Inc. (NYSE:PWR) stands against other most crowded hedge fund stocks that are targeted by short sellers.

Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right?

Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side.

Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally.

We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio.Is Quanta Services, Inc. (PWR) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?

A team of electricians climbing an industrial wiring structure, the complexity of the project revealed in the background.

Quanta Services, Inc. (NYSE:PWR)

Number of Hedge Fund Holders: 67

Short Interest: 3.42%

Quanta Services, Inc. operates as an infrastructure solutions provider. It offers its solutions for the pipeline, electric, and gas utility, communications, energy, and renewable energy industries. The company operates through Electric Power Infrastructure Solutions, Renewable Energy Infrastructure Solutions, and Underground Utility and Infrastructure Solutions segments.

Puerto Rico recently experienced a significant power outage affecting nearly 1.4 million customers, with 400,000 also losing access to water. Luma Energy, which is a joint venture between Canadian energy firm ATCO and Quanta Services, reported that vegetation on transmission lines and technical issues caused the blackout. Power was restored to 56.3% of the company’s total customers by 1 p.m. EST.

An analyst at Piper Sandler recently started coverage on the company with an Overweight rating. The firm showed optimism for the stock despite the recent outage. It named PWR as its top pick, amidst short-term uncertainties about recent policy shifts.

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Kashy Harrison pointed to the company’s track record by saying:

“Quanta Services has met or exceeded quarterly street EPS expectations every quarter since 3Q’19. It is the market leader in T&D [transmission and distribution] and renewable generation services, with potential upside from electrical system work for data centers and onshoring of manufacturing supply chains via the Cupertino acquisition.”

Overall, PWR ranks 15th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of PWR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PWR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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