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Are Investors Undervaluing MasTec (MTZ) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
MasTec (MTZ - Free Report) is a stock many investors are watching right now. MTZ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.22. This compares to its industry's average Forward P/E of 12.33. MTZ's Forward P/E has been as high as 12.80 and as low as 8.81, with a median of 10.62, all within the past year.
Investors will also notice that MTZ has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTZ's PEG compares to its industry's average PEG of 1.71. Over the last 12 months, MTZ's PEG has been as high as 1.53 and as low as 1.10, with a median of 1.30.
These are just a handful of the figures considered in MasTec's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MTZ is an impressive value stock right now.
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Are Investors Undervaluing MasTec (MTZ) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
MasTec (MTZ - Free Report) is a stock many investors are watching right now. MTZ is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 12.22. This compares to its industry's average Forward P/E of 12.33. MTZ's Forward P/E has been as high as 12.80 and as low as 8.81, with a median of 10.62, all within the past year.
Investors will also notice that MTZ has a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MTZ's PEG compares to its industry's average PEG of 1.71. Over the last 12 months, MTZ's PEG has been as high as 1.53 and as low as 1.10, with a median of 1.30.
These are just a handful of the figures considered in MasTec's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MTZ is an impressive value stock right now.