MasTec Stock Rallies 31% in the Past 6 Months: Is MTZ a Buy Right Now?

Core Viewpoint - MasTec, Inc. (MTZ) has demonstrated strong stock performance, gaining nearly 31% over the past six months, significantly outperforming its industry and broader market indices [1][3]. Company Performance - MTZ's stock has outperformed competitors such as EMCOR Group, Quanta Services, and AECOM, which saw gains of 18.9%, 10.8%, and 6.3% respectively during the same period [3]. - The stock is currently trading at $110.40, above its 50-day moving average of $106.62, indicating strong technical support [3]. Growth Outlook - The company is optimistic about growth opportunities, with a robust 18-month backlog of $13.3 billion providing visibility into 2024 [4]. - Full-year revenue guidance has been raised to $12.4 billion, up from a previous estimate of $12.55 billion, reflecting a year-over-year increase from $12 billion [4]. - Adjusted EBITDA is projected to reach $975 million, an increase from $860.3 million in 2023, with an improved margin of 7.9% [4]. Segment Performance - The Clean Energy and Infrastructure segment is expected to grow by 10% in 2024, reaching $4.4 billion in revenues [5]. - The backlog for the Clean Energy and Infrastructure segment increased by 10.3% year-over-year, with a 1.2x book-to-bill ratio, indicating strong future project visibility [6]. - The Power Delivery segment backlog saw a 12% year-over-year increase, supported by a major high-voltage transmission project starting in 2025, projected to generate $300-$500 million annually through 2028 [6]. Strategic Initiatives - MasTec has strengthened its relationship with AT&T, its largest wireless client, which is expected to significantly boost its wireless business starting in the second half of 2024 [9]. - The company is positioned for nearly 20% organic revenue growth in the second half of 2024, driven by demand for wireline services and anticipated funding from the Broadband Equity, Access, and Deployment (BEAD) program [10]. Investment Strategy - MasTec remains focused on strategic acquisitions, completing four in 2023 and five in 2022, while also holding equity stakes in telecommunications entities [11]. - Analysts have shown confidence in MTZ, with upward revisions in earnings estimates for 2024 and 2025 [13]. - The company has a solid earnings surprise history, surpassing consensus estimates in three of the last four quarters, with an average surprise of 19.4% [14]. Market Position - MasTec, with an $8.75 billion market cap, is well-positioned to capitalize on converging trends in the infrastructure construction sector, making it an attractive investment option [16]. - Upward revisions in earnings estimates support its Zacks Rank 2 (Buy) rating, reinforcing its appeal to investors [17].