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Is MasTec (MTZ) a Great Value Stock Right Now?

Zacks Equity Research
Ranger Energy Services, Inc. (RNGR) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

MasTec (MTZ) is a stock many investors are watching right now. MTZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.76. This compares to its industry's average Forward P/E of 13.09. Over the last 12 months, MTZ's Forward P/E has been as high as 17.79 and as low as 9.62, with a median of 12.90.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MTZ has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.62.

Finally, our model also underscores that MTZ has a P/CF ratio of 6.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MTZ's current P/CF looks attractive when compared to its industry's average P/CF of 8.42. MTZ's P/CF has been as high as 9.92 and as low as 5.34, with a median of 7.59, all within the past year.

These are only a few of the key metrics included in MasTec's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MTZ looks like an impressive value stock at the moment.


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