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MasTec (MTZ) Poised to Benefit from Strong Wireless Market
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On Sep 27, we issued an updated research report on MasTec, Inc. (MTZ - Free Report) . The company will gain from full ramp-up on several large oil and gas projects as well as a strong backlog. Further, strong demand in electric distribution and fiber rollout along with opportunities in the wireless market remain the primary tailwinds.
During the second quarter, MasTec began construction on a 70 mile, 765 kilovolt project that is expected to be completed in early 2018. The company anticipates this project to make a small contribution to electrical transmissions segment's revenues during the second half of 2016.
New projects will account for a major percentage of the electrical transmissions segment's revenues in 2016. This, coupled with the ongoing restructuring efforts is estimated to generate continued sequential improvement in the segment's performance over the second half of 2016.
At the end of second quarter, MasTec’s 18-month backlog increased 29% to around $5.3 billion from $4.1 billion in the second quarter of 2015. This increase represents the combination of significant market strength and large long haul oil and gas pipeline contract work coupled with increases in communication and electrical transmission demand. MasTec’s oil and gas business is performing well with strong backlog and it expects that backlog to increase considerably in the coming quarters.
Further, MasTec anticipates strong demand in electric distribution and fiber rollout. Gigabyte revenues continue to grow and opportunities are expanding. The company remains bullish on the long-term opportunities in the wireless market on the back of data usage and demand, which are projected to grow at exponential rates as customers’ requirements make it imperative to increase their networks capacities.
Additionally, MasTec is encouraged by the activity surrounding 5G technology which should create opportunities for its growth.
MasTec currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Some other favorably placed stocks worth considering in the same sector are Louisiana-Pacific Corp. (LPX - Free Report) , Trex Co. Inc. (TREX - Free Report) and Armstrong World Industries, Inc. (AWI - Free Report) .
Trex, also a Zacks Rank #1 stock, has witnessed upward estimate revisions over the past 60 days.
Armstrong World, which carries a Zacks Rank #2 (Buy), has seen solid estimate revisions over the last 7 days.
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MasTec (MTZ) Poised to Benefit from Strong Wireless Market
On Sep 27, we issued an updated research report on MasTec, Inc. (MTZ - Free Report) . The company will gain from full ramp-up on several large oil and gas projects as well as a strong backlog. Further, strong demand in electric distribution and fiber rollout along with opportunities in the wireless market remain the primary tailwinds.
During the second quarter, MasTec began construction on a 70 mile, 765 kilovolt project that is expected to be completed in early 2018. The company anticipates this project to make a small contribution to electrical transmissions segment's revenues during the second half of 2016.
New projects will account for a major percentage of the electrical transmissions segment's revenues in 2016. This, coupled with the ongoing restructuring efforts is estimated to generate continued sequential improvement in the segment's performance over the second half of 2016.
At the end of second quarter, MasTec’s 18-month backlog increased 29% to around $5.3 billion from $4.1 billion in the second quarter of 2015. This increase represents the combination of significant market strength and large long haul oil and gas pipeline contract work coupled with increases in communication and electrical transmission demand. MasTec’s oil and gas business is performing well with strong backlog and it expects that backlog to increase considerably in the coming quarters.
Further, MasTec anticipates strong demand in electric distribution and fiber rollout. Gigabyte revenues continue to grow and opportunities are expanding. The company remains bullish on the long-term opportunities in the wireless market on the back of data usage and demand, which are projected to grow at exponential rates as customers’ requirements make it imperative to increase their networks capacities.
Additionally, MasTec is encouraged by the activity surrounding 5G technology which should create opportunities for its growth.
MasTec currently sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Some other favorably placed stocks worth considering in the same sector are Louisiana-Pacific Corp. (LPX - Free Report) , Trex Co. Inc. (TREX - Free Report) and Armstrong World Industries, Inc. (AWI - Free Report) .
Louisiana-Pacific has seen upward estimate revisions over the past 30 days. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here..
Trex, also a Zacks Rank #1 stock, has witnessed upward estimate revisions over the past 60 days.
Armstrong World, which carries a Zacks Rank #2 (Buy), has seen solid estimate revisions over the last 7 days.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>