MasTec
MTZ
$239.78
-0.51%
MasTec, Inc. is a leading infrastructure construction company operating primarily in North America, providing engineering, building, installation, maintenance, and upgrade services across communications, oil and gas, utility, renewable energy, and other infrastructure sectors. The company is a market leader in the fragmented engineering and construction industry, leveraging its scale and diversified segments to capture growth from large-scale infrastructure investments. Currently, the investor narrative centers on the company's robust revenue growth driven by clean energy and infrastructure projects, alongside concerns about margin volatility and the impact of project timing on quarterly results. Recent analyst actions have been predominantly positive, with upgrades and reiterated Buy ratings, reflecting confidence in the company's long-term growth trajectory despite short-term market fluctuations.…
MTZ
MasTec
$239.78
Investment Opinion: Should I buy MTZ Today?
Based on the analysis, I rate MTZ a Buy. The company is experiencing robust revenue growth (34.45% YoY) and has a strong analyst consensus (Strong Buy, average target $422, implying 75% upside). The forward PE of 19.3 is reasonable given the expected earnings growth, and the PEG ratio of 0.29 suggests the stock is undervalued relative to its growth prospects.
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MTZ 12-Month Price Forecast
The AI assessment is bullish on MTZ, driven by the company's strong revenue growth and attractive valuation metrics. The forward PE of 19.3 and PEG of 0.29 suggest that the market is not fully pricing in the company's growth potential. However, the confidence is medium due to the thin margins and high debt levels, which could undermine the thesis if not managed properly. The stock's high beta also adds volatility risk. If the company can demonstrate margin improvement in the next few quarters, the bullish stance would be reinforced. Conversely, if margins deteriorate further or revenue growth decelerates, the stance would be downgraded to neutral.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on MasTec's 12-month outlook, with a consensus price target around $422.00 and implied upside of +76.0% versus the current price.
Average Target
$422.00
0 analysts
Implied Upside
+76.0%
vs. current price
Analyst Count
—
covering this stock
Price Range
$340 - $518
Analyst target range
The target price range spans from $340 to $518, with a wide spread of $178, indicating a moderate level of uncertainty about the company's future performance. The high target assumes that MasTec will successfully execute on its clean energy and infrastructure backlog, leading to sustained double-digit revenue growth and improved operating leverage. The low target may price in potential margin compression from competitive pressures or project delays. Recent institutional ratings have been consistently positive, with firms like TD Cowen, Baird, and Mizuho reiterating Buy or Outperform ratings in July 2026, and Guggenheim upgrading from Neutral to Buy in May 2026. This pattern of upgrades and reaffirmations suggests that analysts are becoming more confident in the company's ability to deliver on its growth strategy, despite the recent stock price decline.
Bulls vs Bears: MTZ Investment Factors
MasTec presents a classic growth-versus-value tension. The bull case is anchored by explosive revenue growth (34.45% YoY), a strong analyst consensus (Strong Buy, average target $422), and an attractive PEG ratio of 0.29, suggesting the stock is undervalued relative to its growth prospects. However, the bear case is equally compelling, with the stock down 45% from its high, razor-thin gross margins (9.3%), high debt (D/E 0.86), and a beta of 1.84 that amplifies market risk. The most critical tension is whether the company can convert its revenue surge into sustainable profitability—if margins expand, the stock is significantly undervalued; if they remain compressed, the current valuation may be justified. Currently, the evidence slightly favors the bull case given the strong growth trajectory and analyst confidence, but the margin and debt issues warrant caution.
Bullish
- Revenue Growth Accelerating: Q1 2026 revenue surged 34.45% YoY to $3.83B, up from $2.85B in Q1 2025, with the Clean Energy and Infrastructure segment contributing $1.33B. This marks the fastest growth in recent quarters, driven by robust demand for renewable energy and grid modernization projects.
- Analyst Consensus Strong Buy: 19 analysts rate MTZ a Strong Buy with a mean recommendation of 1.2, and recent actions include upgrades from Guggenheim (Neutral to Buy) and reiterated Buy ratings from TD Cowen, Baird, and Mizuho. The average target price of $422 implies ~75% upside from the current $241 price.
- Attractive Growth-Adjusted Valuation: The PEG ratio of 0.29 is well below the typical threshold of 1, indicating that the stock is undervalued relative to its expected earnings growth. With a forward PE of 19.3 versus a trailing PE of 42.5, the market is pricing in significant earnings expansion, which is supported by the company's accelerating revenue.
- Diversified Segment Exposure: Revenue is spread across Clean Energy ($1.33B), Communications ($802M), and Pipeline Infrastructure ($683M) in Q1 2026, reducing reliance on any single sector. This diversification positions MasTec to benefit from multiple infrastructure spending tailwinds, including the energy transition and 5G deployment.
Bearish
- Sharp Price Decline from Highs: The stock has fallen over 45% from its 52-week high of $441.43 to $241, and is down 36.3% over the past 3 months. This severe correction suggests deteriorating investor sentiment, possibly due to concerns about margin sustainability or project execution risks.
- Thin Gross Margins: Gross margin in Q1 2026 was only 9.3%, down from 10.9% in Q1 2025, reflecting intense competition and cost pressures. Operating margin also contracted to 3.7% from 4.4% YoY, indicating that revenue growth is not translating into proportional profitability.
- High Debt Levels: Debt-to-equity ratio stands at 0.86, and interest expense of $43.5M in Q1 2026 consumes a significant portion of operating income ($141.8M). This leverage increases financial risk, especially if project delays or cost overruns strain cash flows.
- High Beta and Market Sensitivity: With a beta of 1.84, MTZ is highly sensitive to market movements, amplifying downside risk during economic downturns. The stock has underperformed the S&P 500 by 21.6% over the past month, highlighting its vulnerability to sector rotation and macro headwinds.
MTZ Technical Analysis
MasTec's stock has experienced a significant uptrend over the past year, with a 1-year price change of +30.67%, but it is currently trading at $241, which is only 54.6% of its 52-week range (low of $171.05, high of $441.43). This positioning near the lower end of the range suggests a sharp correction from the highs, indicating that the stock has given back a substantial portion of its gains and may be approaching oversold territory. The 52-week high of $441.43 was reached in May 2026, and the subsequent decline of over 45% from that peak highlights a pronounced bearish reversal.
Beta
1.84
1.84x market volatility
Max Drawdown
-45.2%
Largest decline past year
52-Week Range
$171-$441
Price range past year
Annual Return
+32.0%
Cumulative gain past year
| Period | MTZ Return | S&P 500 |
|---|---|---|
| 1m | -8.9% | +2.7% |
| 3m | -34.5% | +1.0% |
| 6m | -21.1% | +12.0% |
| 1y | +32.0% | +18.9% |
| ytd | +5.3% | +12.5% |
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MTZ Fundamental Analysis
MasTec's revenue trajectory has been robust, with the most recent quarter (Q1 2026) reporting revenue of $3.83 billion, a 34.45% year-over-year increase from $2.85 billion in Q1 2025. This growth is accelerating, as the prior four quarters showed revenue of $3.94 billion (Q4 2025), $3.97 billion (Q3 2025), $3.54 billion (Q2 2025), and $2.85 billion (Q1 2025), indicating a strong upward trend. The growth is driven primarily by the Clean Energy and Infrastructure segment, which contributed $1.33 billion in revenue, followed by Communications at $802 million and Pipeline Infrastructure at $683 million. This diversification across high-growth sectors positions the company well for continued expansion, though the reliance on project timing can cause quarterly volatility.
Quarterly Revenue
$3.8B
2026-03
Revenue YoY Growth
+34.4%
YoY Comparison
Gross Margin
9.3%
Latest Quarter
Free Cash Flow
$256714000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is MTZ Overvalued?
Given that MasTec has positive net income, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 42.46, while the forward PE is 19.30, indicating that the market expects significant earnings growth in the coming year. The gap between trailing and forward PE suggests that the market is pricing in a substantial improvement in profitability, which is supported by the company's recent revenue acceleration and margin expansion efforts. The PEG ratio of 0.29 further underscores the attractive growth-adjusted valuation, implying that the stock may be undervalued relative to its expected earnings growth.
PE
42.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 14x~147x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
17.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are significant. MasTec's debt-to-equity ratio of 0.86 and interest expense of $43.5M in Q1 2026 consume a large portion of operating income ($141.8M), leaving limited cushion for downturns. The company's gross margin of 9.3% is extremely thin, and operating margin of 3.7% indicates that any cost overrun or project delay could quickly erode profitability. Free cash flow of $256.7M TTM is positive but modest relative to revenue, and the company's reliance on project timing creates earnings volatility, as seen in the swing from $9.9M net income in Q1 2025 to $160.7M in Q3 2025. This unpredictability makes it challenging to value the stock on a trailing basis, and the high trailing PE of 42.5 suggests the market is pricing in significant future improvement.