The Zacks Building Products - Heavy Construction industry stands on a strong growth trajectory, supported by favorable long-term trends despite near-term headwinds such as inflation, tariffs and trade policies, elevated interest rates, project timing uncertainties, and labor market pressures. The outlook is especially bright, thanks to a robust federal infrastructure agenda that continues to unlock substantial investments in transportation, broadband, and energy networks. This surge in spending is fueling r ...

Group 1 - Wall Street analysts expect MasTec (MTZ) to report quarterly earnings of $1.41 per share, reflecting a year-over-year increase of 46.9% [1] - Revenues for the upcoming quarter are projected to be $3.39 billion, which represents a 14.5% increase from the same quarter last year [1] - There has been a 0.6% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [1] Group 2 - Analysts estimate 'Revenue- Communications' to reach $770.03 million, a decrease of 6.6% from the prior-year quarter [4] - 'Revenue- Oil & Gas' is expected to be $473.06 million, indicating a decline of 17.4% year-over-year [4] - 'Revenue- Power Delivery' is forecasted to be $999.78 million, showing a significant increase of 57.1% compared to the previous year [4] Group 3 - The consensus estimate for 'Revenue- Clean Energy and Infrastructure' stands at $1.15 billion, reflecting a year-over-year increase of 22% [5] - 'Adjusted EBITDA- Communications' is projected to reach $85.09 million, up from $81.90 million in the same quarter last year [5] - 'Adjusted EBITDA- Oil and Gas' is expected to be $66.56 million, down from $135.10 million reported in the same quarter last year [6] Group 4 - 'Adjusted EBITDA- Power Delivery' is estimated at $82.60 million, compared to $51.40 million in the previous year [6] - 'Adjusted EBITDA- Clean Energy and Infrastructure' is projected to be $81.45 million, up from $47.40 million year-over-year [7] - MasTec shares have increased by 11.9% in the past month, outperforming the Zacks S&P 500 composite's 3.4% increase [7]

Core Insights - MasTec, Inc. (MTZ) is set to report its second-quarter 2025 results on July 31, with expectations of strong earnings and revenue growth driven by infrastructure spending and clean energy investments [1][3][9] Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for MTZ's second-quarter earnings is stable at $1.41 per share, reflecting a 46.9% year-over-year increase [2] - The estimated revenue for the second quarter is $3.39 billion, indicating a 14.5% rise compared to the previous year [2] - MasTec expects adjusted EBITDA to be between $270 million and $280 million, up from $267.8 million reported a year ago [7] Group 2: Segment Performance - The Clean Energy and Infrastructure segment is projected to generate revenues of $1.15 billion, an increase from $942 million in the prior quarter [5] - The Power Delivery segment is expected to report revenues of $1 billion, up from $637 million a year ago, supported by the Greenlink transmission project [6] - The Communications segment's revenues are estimated at $770 million, down from $825 million reported last year [10] Group 3: Market Trends and Backlog - MasTec's diversified business model and strong market demand position it well for growth, particularly in Clean Energy, Power Delivery, and Communications [4] - The company's backlog is currently pegged at $15.88 billion, an increase from $13.34 billion reported a year ago, indicating strong customer demand [6] Group 4: Challenges and Risks - Adverse weather conditions, productivity issues in Power Delivery, and higher hiring costs in Communications may have negatively impacted performance [8] - Project delays in Clean Energy and unfavorable project mix in Pipeline Infrastructure are also expected to affect results [8]

Market Overview - The U.S. markets have shown an upward trend, with the S&P 500 and Nasdaq Composite reaching all-time highs, increasing by 1.32% and 0.64% respectively last week [1] - Positive corporate earnings and expectations of easing tariffs and trade policies have bolstered investor confidence [1] - Concerns over inflation and signs of a potential economic slowdown are influencing the Federal Reserve's cautious stance on interest rates [1] Economic Indicators - The Conference Board's Leading Economic Indicator fell by 0.3% in June, indicating early signs of a slowdown, with weakened consumer expectations and fewer manufacturing orders [2] - The S&P Global's U.S. flash PMI data for July indicated an acceleration in business activity driven by the services sector, while the manufacturing PMI dropped to 49.5 [2] - Initial jobless claims decreased by 4,000 to 217,000 for the week ending July 19, suggesting a resilient labor market with limited layoffs [2] Stock Performance - AngloGold Ashanti plc's shares increased by 23.1% since its upgrade to Zacks Rank 1 on May 19, outperforming the S&P 500's 7.2% increase [3][4] - NN Group N.V. saw a return of 12.1% since its upgrade to Zacks Rank 1 on May 29, compared to the S&P 500's 8.4% increase [4] - Zacks Rank 1 stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks has outperformed the S&P 500 index by more than 12 percentage points since 1988 [6] - The Zacks Focus List portfolio returned +8.84% in 2025 (through June 30) compared to +6.21% for the S&P 500 [14] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [18] Notable Stocks - Intellia Therapeutics, Inc. gained 60.3% over the past 12 weeks, while Caterpillar Inc. returned 41.3% in the same period [13][14] - OptimizeRx Corporation and Artisan Partners Asset Management saw increases of 18.2% and 14.6% respectively since their upgrades to Outperform [10] - Hershey Company returned 17.8% over the past 12 weeks, benefiting from investor interest in quality dividend stocks [20]

MasTec (MTZ) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of ...

Group 1 - Janus International Group, Inc. (JBI) has shown strong year-to-date performance, returning about 22.3% since the start of the calendar year, significantly outperforming the average gain of 2.5% in the Construction sector [4] - The Zacks Consensus Estimate for JBI's full-year earnings has increased by 35.4% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - JBI currently holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3][4] Group 2 - Janus International Group, Inc. is part of the Building Products - Miscellaneous industry, which has seen an average loss of 3.7% this year, highlighting JBI's relative strength in performance [6] - In comparison, MasTec (MTZ), another Construction stock, has also outperformed the sector with a year-to-date increase of 26.3% and holds a Zacks Rank of 2 (Buy) [5][7] - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked 2 and has gained 17.2% year to date, indicating a strong performance within that segment [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: MasTec (MTZ) - MasTec currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, MasTec shares increased by 5.06%, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 4.72% [5] - In a longer timeframe, MasTec shares have risen by 57.49% over the last three months and 66.56% over the past year, significantly outperforming the S&P 500, which increased by 10.42% and 14.64% respectively [6] Trading Volume - The average 20-day trading volume for MasTec is 780,297 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, four earnings estimates for MasTec have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.76 to $6.07 [9] - For the next fiscal year, three estimates have also moved upwards with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, MasTec is identified as a promising stock to consider for near-term investment [11]

Core Insights - The article emphasizes the importance of investing in growth and momentum stocks that are reasonably priced and have the potential to outperform the market over the long term [1] - It highlights a successful investment strategy where the S&P 500 increased by 367% and the Nasdaq by 685% from 2009 to 2019, following a recommendation to buy at the financial crisis's bottom in March 2009 [1] Investment Strategy - The focus is on long-term investment in high-quality growth stocks, utilizing options as part of the strategy [1] - The goal is to assist investors in making money through strategic investments in quality stocks [1]

Summary of MasTec's Conference Call Company Overview - **Company**: MasTec - **Industry**: Renewable Energy, Pipeline Construction, Power Delivery, Data Centers Key Points Renewable Energy Business - **Steady Demand**: Customers are maintaining steady activity levels, with projects extending into 2027, indicating strong underlying demand for renewable energy [3][4][5] - **Project Execution**: No significant delays or cancellations reported; customers are confident in moving projects forward despite uncertainties [5][6] - **Customer Relationships**: Emphasis on deepening relationships with customers to enhance project visibility and resource allocation [17][19][20] - **Operational Improvements**: Continuous improvement in execution and integration of services across the value chain, leading to better project outcomes and margin expansion opportunities [12][14][15][16] Pipeline Business - **Market Position**: MasTec has been a leading pipeline contractor, participating in major projects since 2015, with a positive shift in investor sentiment post-pandemic [23][24] - **Demand Drivers**: Increased demand for pipeline infrastructure due to capacity contractions and the need for additional gas-fired generation expected in 3-4 years [25][27][28] - **Proactive Customer Engagement**: Customers are engaging earlier about projects, indicating a multi-year demand opportunity [27][31] - **Margin Expectations**: Targeting high double-digit margins through resource efficiency and proactive project management [33][35] Power Delivery and Data Centers - **Project Capacity**: MasTec is positioned to handle additional large projects, focusing on quality over quantity in project selection [39][40] - **Data Center Opportunities**: Significant growth potential in data center services, with MasTec capable of providing a wide range of services, although not yet fully integrated into a dedicated P&L [47][52] Financial Health and Capital Allocation - **Balance Sheet Strength**: The company has a strong balance sheet, allowing for flexibility in capital allocation, including stock buybacks and strategic investments [53][54] - **Growth Priorities**: Focus on organic growth and complementary M&A with lower integration risks, while maintaining shareholder return strategies [54][55] Additional Insights - **Market Dynamics**: The pipeline industry is experiencing a shift in competition, with a mix of union and non-union capabilities, which may affect project execution strategies [36][38] - **Long-Term Outlook**: The company is optimistic about sustained growth in both the renewable and pipeline sectors, with ongoing dialogues with customers indicating a robust project pipeline [30][31][42] This summary encapsulates the key insights from MasTec's conference call, highlighting the company's strategic focus, market positioning, and financial health within the renewable energy and infrastructure sectors.

Company Performance - MasTec (MTZ) shares have increased by 9.1% over the past month, reaching a new 52-week high of $167.03 [1] - Year-to-date, MasTec has gained 22.2%, outperforming the Zacks Construction sector, which declined by 2.3%, and the Zacks Building Products - Heavy Construction industry, which returned 9% [1] Earnings and Revenue - MasTec has consistently exceeded earnings expectations, reporting EPS of $0.51 against a consensus estimate of $0.34 in its last earnings report [2] - For the current fiscal year, MasTec is projected to achieve earnings of $6.07 per share on revenues of $13.66 billion, reflecting a 53.67% increase in EPS and an 11.03% increase in revenues [3] - The next fiscal year forecasts earnings of $7.1 per share on $14.79 billion in revenues, indicating a year-over-year change of 16.97% in EPS and 8.3% in revenues [3] Valuation Metrics - MasTec has a Value Score of C, a Growth Score of A, and a Momentum Score of F, resulting in a VGM Score of B [6] - The stock trades at 27.4 times current fiscal year EPS estimates, which is above the peer industry average of 21 times [6] - On a trailing cash flow basis, MasTec trades at 16.6 times compared to the peer group's average of 12.7 times [6] Zacks Rank - MasTec holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [7] - The recommendation suggests that MasTec shares may have further upside potential in the near term [7] Industry Comparison - The Building Products - Heavy Construction industry is performing well, ranking in the top 2% of all industries, indicating favorable conditions for both MasTec and its peers [10] - Primoris Services Corporation (PRIM), a competitor, also has a Zacks Rank of 2 (Buy) and shows strong earnings potential, with expected earnings of $4.44 per share on revenues of $6.73 billion for the current fiscal year [8][9]