Stock of the Day

March 30, 2020

MasTec (MTZ)

$238.92
-$0.86 (-0.4%)
Market Cap: $19.26B

About MasTec

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company build infrastructure for wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; pipeline infrastructure, including natural gas, water, carbon capture sequestration, and other product transport; power delivery services, such as electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure, including roads, bridges, and rail; and water infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation, power generation, civil and industrial facilities, pipelines, and fiber optic and other cables, as well as install-to-the-home services. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and civil and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, including renewable and other energy providers, pipeline operators, civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.

Today's Trend

MasTec, Inc. (NYSE: MTZ) received a mixed set of signals. The company’s strong infrastructure outlook and raised guidance support the investment case, but multiple analysts reduced their price targets, suggesting expectations have been reset after recent weakness in communications.

  • MasTec raised its 2026 outlook following record second-quarter results, citing strong infrastructure demand, a record backlog and growing exposure to data-center construction. These trends could support future revenue and earnings growth. MTZ Q2 Earnings Call Highlights Infrastructure Demand Trends
  • A second-quarter review said weakness in the communications business was outweighed by strength in power and clean energy, along with the acquisition of Superior Group. This mix suggests MasTec may be benefiting from favorable utility, energy-transition and infrastructure spending. MTZ Q2 Deep Dive
  • Unusually heavy call-option activity was reported, with investors purchasing 2,355 calls—about 58% above average volume. The activity indicates increased bullish speculation but does not guarantee sustained buying.
  • Mizuho lowered its price target to $457 from $502 while retaining an “outperform” rating. The target still implies substantial upside, but the reduction reflects more cautious valuation assumptions. Benzinga analyst update
  • Citigroup, Truist, TD Cowen and Robert W. Baird also cut their price targets, although each maintained a positive rating ranging from “buy” to “outperform.” The broad pattern of target reductions may weigh on sentiment despite analysts’ continued confidence in MasTec’s long-term prospects.

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