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MasTec (MTZ) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

MasTec (MTZ) closed the most recent trading day at $67.68, moving -0.99% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the utility contractor had gained 7.37% over the past month. This has outpaced the Construction sector's gain of 4.3% and the S&P 500's gain of 0.32% in that time.

MTZ will be looking to display strength as it nears its next earnings release, which is expected to be October 31, 2019. On that day, MTZ is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 23.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.16 billion, up 9.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.06 per share and revenue of $7.71 billion. These totals would mark changes of +34.22% and +11.65%, respectively, from last year.

Any recent changes to analyst estimates for MTZ should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. MTZ is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, MTZ is currently trading at a Forward P/E ratio of 13.5. Its industry sports an average Forward P/E of 12.59, so we one might conclude that MTZ is trading at a premium comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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