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MasTec, Inc. (MTZ - Free Report) has an excellent earnings history, beating estimates for the past 4 years and counting.

Growth rates are strong thanks to organic and M&A moves, but the valuations are also showing a discounted price.

Company Description

MasTec, Inc. is a North American infrastructure construction company. Industries include energy, wireless, solar, sewage, and others.

44% Organic Growth

On Aug 3 MasTec reported second quarter revenue that was up 52%, to $751 million. Excluding M&A activities the top line was up 44%. The company went on to say that the business environment is strong and should lead to a great year.

Earnings came in at $0.31 per share, up 72% year over year and 3 cents higher than the Zacks Consensus Estimate. MasTec has topped forecasts in each quarter for the past 4 years.

Active Quarter

During the period MasTec bought the remaining 67% stake in EC Source, previously MTZ had 33% ownership. The company expanded to the north when it bought a Canadian oil and gas pipeline. MasTec also bought 2 other companies during the period.

Raising Outlook

Given the surprise and M&A activity the company raised its guidance. Analysts adjusted their EPS forecasts which now average $1.28 for 2011 and $1.52 for next year. That puts growth rates at 22% and 19%, respectively.

Valuations Look Good

Shares of MTZ are going for 13 times the 2011 consensus, which give them a 0.9 PEG ratio. The price to sales is just 0.5 times and the stock is at 1.7 times book value.

The Chart

Of course, part of those valuations looking good is tied to the recent sell off. MTZ was hit along with everything else but, this could be a great entry point for this Zacks #1 Rank (Strong Buy).

MasTec, Inc. - ticker MTZ>

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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