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6 Reasons Why You Should Add Mastec (MTZ) to Your Portfolio
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MasTec, Inc. (MTZ - Free Report) has been performing well of late. The company has a market capitalization of $3.25 billion and is a leading infrastructure construction company operating throughout the U.S. If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Strong Q4 Performance, Upbeat Guidance
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%. Further, earnings beat the Zacks Consensus Estimate by a comfortable margin of 18% and came ahead of management's guidance of 54 cents per share.
MasTec’s net sales improved 31% year over year to $1.34 billion in the quarter, coming ahead of the Zacks Consensus Estimate of $1.32 billion, as well as management’s guidance of $1.3 billion. The better-than-expected performance came on the back of increase in revenues across all segments, particularly led by the Oil and Gas segment which recorded a surge of 62% year over year to $570 million.
For full-year 2017, MasTec guided adjusted earnings per share guidance to approximate $2.35, a 24% increase over 2016. Revenues are now projected to grow 7% to $5.5 billion. Additionally, the company estimates adjusted EBITDA to climb 15% to $550 million.
Positive Earnings Surprise History
MasTec has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in all the trailing four quarters, delivering a positive average earnings surprise of 54.36%.
Estimates Moving Up
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 14% to $2.26 per share.
Solid Zacks Rank
The Zacks Rank #2 (Buy) stock has a VGM score of “A”. Here V stands for Value, G for Growth and M for Momentum. MasTec’s score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Price Performance
MasTec's shares have outperformed the Zacks categorized Building – Heavy Construction sub industry in the past one year.
The company’s share price has surged 95.7% in the last one year, while the sub industry witnessed a gain of 22.9% in the same time frame.
Growth Prospects
In its wireline and wireless communication markets, MasTec expects significant expansion related to both 5G and fiber deployment, as its 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 its 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.
MasTec has a long-term expected earnings growth rate of 14%.
Dycom Industries has an average positive earnings surprise of +17.30% for the trailing four quarters. Louisiana-Pacific has an impressive average earnings surprise of 66.28% for the last four quarters, while NVR, Inc. has an average earnings surprise of 0.90% for the past four quarters.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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6 Reasons Why You Should Add Mastec (MTZ) to Your Portfolio
MasTec, Inc. (MTZ - Free Report) has been performing well of late. The company has a market capitalization of $3.25 billion and is a leading infrastructure construction company operating throughout the U.S. If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Strong Q4 Performance, Upbeat Guidance
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%. Further, earnings beat the Zacks Consensus Estimate by a comfortable margin of 18% and came ahead of management's guidance of 54 cents per share.
MasTec’s net sales improved 31% year over year to $1.34 billion in the quarter, coming ahead of the Zacks Consensus Estimate of $1.32 billion, as well as management’s guidance of $1.3 billion. The better-than-expected performance came on the back of increase in revenues across all segments, particularly led by the Oil and Gas segment which recorded a surge of 62% year over year to $570 million.
For full-year 2017, MasTec guided adjusted earnings per share guidance to approximate $2.35, a 24% increase over 2016. Revenues are now projected to grow 7% to $5.5 billion. Additionally, the company estimates adjusted EBITDA to climb 15% to $550 million.
Positive Earnings Surprise History
MasTec has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in all the trailing four quarters, delivering a positive average earnings surprise of 54.36%.
Estimates Moving Up
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 14% to $2.26 per share.
Solid Zacks Rank
The Zacks Rank #2 (Buy) stock has a VGM score of “A”. Here V stands for Value, G for Growth and M for Momentum. MasTec’s score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Price Performance
MasTec's shares have outperformed the Zacks categorized Building – Heavy Construction sub industry in the past one year.
The company’s share price has surged 95.7% in the last one year, while the sub industry witnessed a gain of 22.9% in the same time frame.
Growth Prospects
In its wireline and wireless communication markets, MasTec expects significant expansion related to both 5G and fiber deployment, as its 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 its 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.
MasTec has a long-term expected earnings growth rate of 14%.
Other Stocks to Consider
Some other favourably placed stocks worth considering in the sector include Dycom Industries, Inc. (DY - Free Report) , Louisiana-Pacific Corp. (LPX - Free Report) and NVR, Inc. (NVR - 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% for the trailing four quarters. Louisiana-Pacific has an impressive average earnings surprise of 66.28% for the last four quarters, while NVR, Inc. has an average earnings surprise of 0.90% for the past four quarters.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>