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MasTec Gains 18% in 3 Months: Should Investors Buy the Stock Now?
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Shares of MasTec, Inc. (MTZ - Free Report) have gained 18.8% over the past three months, outperforming 7.1% growth in the Zacks Building Products - Heavy Construction industry. The stock has also surpassed the broader Construction sector's rise of 0.8% and the S&P 500 index’s 3% fall during the same period.
This Coral Gables, FL-based leading infrastructure construction company recently reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The company’s top line increased 6% year over year, supported by strong non-pipeline performance, growth in the pipeline market and a solid backlog that is also supporting end-market growth. Owing to strong momentum and progress in the non-pipeline business, the company raised its 2025 guidance. (read more: MasTec Q1 Earnings & Revenues Beat, 2025 Guidance Raised)
MTZ Stock’s Past 3 Months’ Price Performance
Image Source: Zacks Investment Research
The MTZ stock has outperformed some other players in the past three months, including AECOM (ACM - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Fluor Corporation (FLR - Free Report) . In the said time frame, AECOM and EMCOR have gained 9.7% and 10%, respectively, while Fluor has declined 3.4%.
Let us take a closer look at the factors driving MasTec’s recent gain and what this may signal for the stock going forward.
Non-Pipeline Strength Drives MasTec’s Business Diversification
MasTec’s focus on expanding its non-pipeline segments has helped balance the performance across the business. Strong activity in communications, power and clean energy has supported steady growth, even amid softness in the pipeline segment. Non-pipeline revenues grew 21% year over year in the first quarter, supported by the demand for broadband infrastructure, grid modernization and clean energy projects. Backed by strong performance in non-pipeline operations, the company is positioned for steady growth in 2025 and the long term.
MTZ’s Solid Momentum in Communications Market
The Communications Segment shows steady demand for wireless and wireline infrastructure. Growth is driven by broadband expansion and increasing data center investments. The segment benefits from a broad customer base and ongoing technology upgrades, reflecting stable market conditions.
In the first quarter, revenues increased from most of the company’s top 10 customers. The wireless business grew due to a wider geographic reach and a broader range of services. Demand for wireline services remains supported by broadband build-outs and federal funding. Growth in middle-mile broadband and increased hyperscaler spending on data centers is driving fiber demand. Project opportunities show no significant impact of macro concerns related to AI power usage. The company’s data center work spans multiple segments and is coordinated through a central office for effective customer outreach.
MasTec’s Backlog Growth Strengthens Across Key Segments
The company continues to benefit from strong backlog trends, supported by its diversified business model and steady demand across key markets. The company’s ability to secure new contracts across multiple segments is providing revenue visibility and reinforcing its growth prospects.
As of March 31, 2025, MasTec had an 18-month backlog of $15.88 billion, up 23.7% year over year and 11% sequentially. This upside was driven by strong bookings across all four segments, most significantly by Pipeline Infrastructure. The ability to secure new contracts across multiple infrastructure verticals has reinforced MasTec’s long-term growth potential.
MTZ’s Clean Energy Segment Remains Resilient Amid Challenges
Despite tariff-driven material inflation and potential changes in federal renewable support, the Clean Energy and Infrastructure segment remains strong. The company views renewables as a competitive and viable source of clean power for the future. Backlog for this segment increased sequentially to a record level of $4.4 billion.
While some timing headwinds may arise from changes to the IRA and other policies, the current administration’s pro-energy stance and efforts to reduce regulations can speed up project permitting. Moreover, the company does not see significant risks to its 2025 business outlook.
Upward Estimate Revisions for MasTec
Wall Street analysts remain optimistic about MTZ’s earnings potential. Over the past 30 days, earnings estimates for 2025 have been revised upward to $6.12 from $5.55, as shown below. The estimated figure indicates growth of 54.9% from that reported a year ago.
Image Source: Zacks Investment Research
MTZ Trades at a Premium
As MasTec has outperformed the industry in the past three months, its valuation looks a bit stretched compared with the industry average. Looking at the company’s forward 12-month Price/Earnings ratio (P/E F12M), it is currently overvalued compared with the industry, as shown in the chart below. A high valuation raises concerns about the sustainability of its current price if the company's future performance does not meet investors’ expectations.
Image Source: Zacks Investment Research
Our Thoughts
MTZ demonstrates strong growth, supported by a solid backlog and diversification across key business segments, including communications and clean energy. While some challenges remain concerning, such as softness in the pipeline segment and regulatory uncertainties, the company’s earnings outlook has seen positive revisions for 2025.
Image: Bigstock
MasTec Gains 18% in 3 Months: Should Investors Buy the Stock Now?
Shares of MasTec, Inc. (MTZ - Free Report) have gained 18.8% over the past three months, outperforming 7.1% growth in the Zacks Building Products - Heavy Construction industry. The stock has also surpassed the broader Construction sector's rise of 0.8% and the S&P 500 index’s 3% fall during the same period.
This Coral Gables, FL-based leading infrastructure construction company recently reported first-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The company’s top line increased 6% year over year, supported by strong non-pipeline performance, growth in the pipeline market and a solid backlog that is also supporting end-market growth. Owing to strong momentum and progress in the non-pipeline business, the company raised its 2025 guidance. (read more: MasTec Q1 Earnings & Revenues Beat, 2025 Guidance Raised)
MTZ Stock’s Past 3 Months’ Price Performance
Image Source: Zacks Investment Research
The MTZ stock has outperformed some other players in the past three months, including AECOM (ACM - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Fluor Corporation (FLR - Free Report) . In the said time frame, AECOM and EMCOR have gained 9.7% and 10%, respectively, while Fluor has declined 3.4%.
Let us take a closer look at the factors driving MasTec’s recent gain and what this may signal for the stock going forward.
Non-Pipeline Strength Drives MasTec’s Business Diversification
MasTec’s focus on expanding its non-pipeline segments has helped balance the performance across the business. Strong activity in communications, power and clean energy has supported steady growth, even amid softness in the pipeline segment. Non-pipeline revenues grew 21% year over year in the first quarter, supported by the demand for broadband infrastructure, grid modernization and clean energy projects. Backed by strong performance in non-pipeline operations, the company is positioned for steady growth in 2025 and the long term.
MTZ’s Solid Momentum in Communications Market
The Communications Segment shows steady demand for wireless and wireline infrastructure. Growth is driven by broadband expansion and increasing data center investments. The segment benefits from a broad customer base and ongoing technology upgrades, reflecting stable market conditions.
In the first quarter, revenues increased from most of the company’s top 10 customers. The wireless business grew due to a wider geographic reach and a broader range of services. Demand for wireline services remains supported by broadband build-outs and federal funding. Growth in middle-mile broadband and increased hyperscaler spending on data centers is driving fiber demand. Project opportunities show no significant impact of macro concerns related to AI power usage. The company’s data center work spans multiple segments and is coordinated through a central office for effective customer outreach.
MasTec’s Backlog Growth Strengthens Across Key Segments
The company continues to benefit from strong backlog trends, supported by its diversified business model and steady demand across key markets. The company’s ability to secure new contracts across multiple segments is providing revenue visibility and reinforcing its growth prospects.
As of March 31, 2025, MasTec had an 18-month backlog of $15.88 billion, up 23.7% year over year and 11% sequentially. This upside was driven by strong bookings across all four segments, most significantly by Pipeline Infrastructure. The ability to secure new contracts across multiple infrastructure verticals has reinforced MasTec’s long-term growth potential.
MTZ’s Clean Energy Segment Remains Resilient Amid Challenges
Despite tariff-driven material inflation and potential changes in federal renewable support, the Clean Energy and Infrastructure segment remains strong. The company views renewables as a competitive and viable source of clean power for the future. Backlog for this segment increased sequentially to a record level of $4.4 billion.
While some timing headwinds may arise from changes to the IRA and other policies, the current administration’s pro-energy stance and efforts to reduce regulations can speed up project permitting. Moreover, the company does not see significant risks to its 2025 business outlook.
Upward Estimate Revisions for MasTec
Wall Street analysts remain optimistic about MTZ’s earnings potential. Over the past 30 days, earnings estimates for 2025 have been revised upward to $6.12 from $5.55, as shown below. The estimated figure indicates growth of 54.9% from that reported a year ago.
Image Source: Zacks Investment Research
MTZ Trades at a Premium
As MasTec has outperformed the industry in the past three months, its valuation looks a bit stretched compared with the industry average. Looking at the company’s forward 12-month Price/Earnings ratio (P/E F12M), it is currently overvalued compared with the industry, as shown in the chart below. A high valuation raises concerns about the sustainability of its current price if the company's future performance does not meet investors’ expectations.
Image Source: Zacks Investment Research
Our Thoughts
MTZ demonstrates strong growth, supported by a solid backlog and diversification across key business segments, including communications and clean energy. While some challenges remain concerning, such as softness in the pipeline segment and regulatory uncertainties, the company’s earnings outlook has seen positive revisions for 2025.
With a Zacks Rank #2 (Buy) at present, MasTec is an attractive investment, offering compelling growth potential in the infrastructure sector. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.