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MasTec (MTZ) Hits 52-Week High on Robust Growth Prospects

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Shares of MasTec, Inc. (MTZ - Free Report) reached a new 52-week high of $42.00 on Apr 10, before closing a little lower at $41.05. The stock price appreciation continues on the back of better-than-expected performance in fourth-quarter 2016, resulting from strength in the company’s Oil & Gas segment.

This Coral Gables, FL-based infrastructure construction company has a market cap of $3.39 billion. Average volume of shares traded in the last three months is approximately 844K.

The company has outperformed the Zacks Consensus Estimate in all the four trailing quarters, with an average positive surprise of 54.36%.

MasTec, Inc. Price and Consensus

 

MasTec, Inc. Price and Consensus | MasTec, Inc. Quote
 

Strengths of MasTec

MasTec reported fourth-quarter 2016 adjusted earnings per share of 68 cents (excluding one-time items barring non-cash stock compensation expense), a substantial year-over-year improvement of 278%. MasTec’s net sales improved 31% year over year to $1.34 billion in the quarter, ahead of management’s guidance of $1.3 billion. The better-than-expected performance can be attributed to increase in revenues across all segments, particularly the Oil and Gas segment which recorded a surge of 62% year over year to $570 million.

Backlog in Oil and Gas pipeline segment increased to a record level of over $2.2 billion in 2016. MasTec anticipates having an excellent 2017, and the company remains encouraged about its prospects in 2018 and beyond. Further, it will replenish backlog during 2017 in this segment.

In its wireline and wireless communication markets, MasTec expects significant expansion related to both 5G and fiber deployment, as communications business enjoys solid growth prospects. The company also anticipates significant opportunities related to gigabit broadband initiatives, along with fiber deployment.

Additionally, MasTec remains optimistic about pipeline business. The company has witnessed a significant year-over-year increase in number of drilling rigs. Further, with improving and stabilizing commodity prices, shale-related activities are likely to improve, going ahead.

The company’s estimates for first-quarter fiscal 2017 and fiscal 2017, have moved north in the past 30 days, reflecting the positive outlook of analysts on the stock. For the quarter, estimates have surged 96% to the current level of 47 cents per share in the past 30 days. For fiscal 2017, the Zacks Consensus Estimate has moved up 4% to $2.26 per share.



MasTec's shares have outperformed the Zacks categorized Building – Heavy Construction sub industry year to date. The company’s share price has surged 7.3% over the said timeframe, while the sub industry witnessed a gain of 0.1%.

Currently, MasTec carries a Zacks Rank #2 (Buy).

Other Stocks that Warrant a Look

Other top-ranked stocks worth considering in the sector include Dycom Industries, Inc. (DY - Free Report) , Louisiana-Pacific Corp. (LPX - Free Report) and Boise Cascade Company (BCC - Free Report) . All of these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dycom Industries has an average positive earnings surprise of +17.30% in the trailing four quarters. Louisiana-Pacific has an impressive average earnings surprise of 66.28% in the last four quarters, while Boise Cascade has an average earnings surprise of 517.51% in the past four quarters.

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