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MasTec (MTZ) Gains But Lags Market: What You Should Know

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In the latest trading session, MasTec (MTZ - Free Report) closed at $63.30, marking a +0.17% move from the previous day. The stock lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 1.42%, while the tech-heavy Nasdaq added 1.4%.

Prior to today's trading, shares of the utility contractor had lost 0.58% over the past month. This has lagged the Construction sector's gain of 3.78% and the S&P 500's gain of 0.38% in that time.

MTZ will be looking to display strength as it nears its next earnings release. In that report, analysts expect MTZ to post earnings of $1.63 per share. This would mark year-over-year growth of 22.56%. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 9.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.06 per share and revenue of $7.70 billion, which would represent changes of +34.22% and +11.4%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MTZ. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MTZ currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that MTZ has a Forward P/E ratio of 12.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.4.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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