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Are Investors Undervaluing MasTec (MTZ) Right Now?

Zacks Equity Research
Nucor (NUE) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is MasTec (MTZ). MTZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.99, while its industry has an average P/E of 11.81. MTZ's Forward P/E has been as high as 13.89 and as low as 8.81, with a median of 10.76, all within the past year.

Finally, investors should note that MTZ has a P/CF ratio of 7.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.98. Over the past year, MTZ's P/CF has been as high as 8.49 and as low as 5.03, with a median of 6.75.

Value investors will likely look at more than just these metrics, but the above data helps show that MasTec is likely undervalued currently. And when considering the strength of its earnings outlook, MTZ sticks out at as one of the market's strongest value stocks.


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