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MasTec, Inc.’s (MTZ - Analyst Report) shares jumped 13% in the past week after this infrastructure construction company reported solid second quarter 2012 results, including a positive revision in its full year guidance. With estimates moving higher and a price-to-sales (P/S) ratio as low as 0.4, this Zacks #2 Rank (Buy) presents a true value option for investors.

Driving Catalysts

On August 2, MasTec, Inc. reported second quarter 2012 earnings per share of 36 cents, which surpassed the Zacks Consensus Estimate by 2.9% and the year-ago earnings by 28.6%.

Revenue of $992 million spiked 38% year over year on the back of a healthy growth in the power generation/industrial, electrical transmission, oil and gas pipeline and facilities, and install-to-the-home businesses.

The company also announced the completion of its $150 million stock buyback program with the repurchase of roughly 9.47 million shares for an average price of $15.84 per share.

Impressive second quarter results and bright prospects made management revise its 2012 guidance. Revenue is now expected between $3.55 billion and $3.60 billion versus $3.35 billion expected earlier, while earnings were revised to $1.50 per share from $1.42.

Earnings Estimates Move Higher

Over the last 7 days, all six estimates increased for 2012, pushing the Zacks Consensus Estimate up by 4.9% to $1.50 per share. Meanwhile for 2013, four of 8 estimates moved upward, leading to a 2.9% rise in the Zacks Consensus Estimate to $1.75 per share.

The Zacks Consensus Estimates represent year-over-year earnings growth of 40.0% for 2012 and 17.1% for 2013.

A Value Play

In addition to a low P/S, MasTec is currently trading at a forward P/E multiple of 12.0 and a P/B multiple of 1.8. A P/S ratio lower than 1.0, a P/E ratio below 15.0 and a P/B ratio under 3.0 generally indicate value.

The chart below clearly shows that things have been working in favor of the company with shares reaching new highs since the beginning of 2011. Growth prospects appear bright, as is backed by the rising Zacks Consensus Estimates.

MasTec, Inc. provides infrastructure construction services throughout North America under the MasTec service mark, mainly in the utility, communications and government industries. Year-ending 2011, the company had 10,000 employees, more than 400 locations and a solid $3.3 billion backlog. Also, the top ten customers accounted for about 71% of revenue in the year, while its prime customers DIRECTV and AT&T accounted for 23% each.

MasTec is based in Coral Gables, Florida, and was incorporated in 1929. It operates in the Industrial Goods sector and currently has a market capitalization of approximately $1.44 billion.

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