For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in MasTec (
MTZ Quick Quote MTZ - Free Report) ten years ago? It may not have been easy to hold on to MTZ for all that time, but if you did, how much would your investment be worth today? MasTec's Business In-Depth
With that in mind, let's take a look at MasTec's main business drivers.
MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility and other infrastructure.
MasTec reports its results under five segments focused on broad end-user markets – Communications (accounting for 39.7% of total 2020 revenues): The segment performs engineering, construction and maintenance of communications infrastructure mainly related to wireless and wireline communications and install-to-the-home. Oil and Gas (28.2%): The segment performs engineering, construction and maintenance services on oil and natural gas pipelines and processing facilities for the energy and utilities industries. Electrical Transmission (8%): The segment primarily serves the energy and utility industries through the engineering, construction and maintenance of electrical transmission lines and substations. Clean Energy and Infrastructure (primarily known as Power Generation and Industrial) (24.1%): The segment primarily serves the energy and utility end-markets and other end-markets through the installation and construction of conventional and renewable power plants, related electrical transmission infrastructure, ethanol facilities and various types of industrial infrastructure. Other: It primarily includes small business units that perform construction services for a variety of end markets in Mexico and elsewhere internationally. Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For MasTec, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in May 2011 would be worth $5,215.88, or a 421.59% gain, as of May 6, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 212.16% and the price of gold increased 15.12% over the same time frame in comparison.
Going forward, analysts are expecting more upside for MTZ.
Shares of MasTec have outperformed the industry in the year-to-date period. The company is expected to benefit from strong Communications, Electrical Transmission, and Clean Energy and Infrastructure units. Despite uncertain market conditions, its performance in 2021 is expected to be resilient, given strong backlog and accelerating growth potential, especially across communications, transmission, power generation, as well as renewable portfolios. Also, its strong balance sheet and resilient FCF profile are encouraging. Earnings estimates for 2021 have moved upward in the past 60 days, depicting analysts' optimism regarding the stock's growth potential. However, COVID-related disruptions and volatility in the energy market remain potent headwinds.
The stock is up 10.92% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021. The consensus estimate has moved up as well.