MasTec, Inc.

Based on a comprehensive analysis of MTZ, the stock presents a compelling but high-risk growth opportunity.

Technical Perspective: The stock exhibits powerful bullish momentum, significantly outpacing the market. However, its high volatility (beta of 1.93) and position near 52-week highs suggest it is overbought and susceptible to a short-term pullback.

Fundamental Perspective: Operationally, MTZ is strong, showing excellent revenue growth, expanding profit margins, and high operational efficiency. A key concern is its low cash ratio, indicating potential short-term liquidity constraints, though overall financial health is acceptable.

Valuation & Recommendation: While traditional valuation metrics like the high P/E ratio suggest overvaluation, the very low PEG ratio of 0.29 is a strong signal that the stock is undervalued relative to its future earnings growth potential. This indicates the market is pricing in significant expansion.

Buy Recommendation: MTZ is a buy for growth-oriented investors with a higher risk tolerance. The company's robust operational performance and powerful earnings growth trajectory, as signaled by the low PEG ratio, justify its premium valuation. Investors should be prepared for significant volatility but are positioned to benefit from continued strong fundamental growth.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the provided analysis, here is a 12-month outlook for MTZ:

12-Month Outlook for MTZ

The outlook for MTZ over the next year is bullish, driven by its powerful earnings growth trajectory as indicated by the exceptionally low PEG ratio, which is the primary catalyst for continued share price appreciation. The key risk is the stock's high volatility and overbought technical condition, making it highly susceptible to a significant near-term pullback, especially if broader market sentiment weakens. While a specific analyst target is unavailable, the strong fundamental growth justifies the current premium valuation for risk-tolerant investors, with expectations for upward momentum to continue provided the company executes on its growth potential, though the journey will likely be volatile.

Wall Street Consensus

Most Wall Street analysts are optimistic about MasTec, Inc.'s 12-month outlook, with consensus target around $275.61, indicating expected upside potential.

Overall, MTZ has investment potential but also faces challenges. Here are key factors to weigh before investing.

MTZ has demonstrated exceptional strength with substantial gains significantly outperforming the broader market. The stock's high beta of 1.93 indicates it is considerably more volatile than average, delivering amplified returns along with elevated risk during market swings. Its current trajectory is overwhelmingly positive.

Over the short term, MTZ shows powerful momentum, rising 13.58% in one month and an impressive 35.59% over three months. It has substantially outperformed the market by 35.61% over the last quarter, validating its strong upward trend with marked momentum compared to the benchmark.

Currently trading at $267.93, MTZ is near the top of its 52-week range, sitting just 3.2% below its high of $276.79. This proximity to the peak, coupled with the significant recent gains, suggests the stock is in an overbought condition and may be susceptible to a pullback despite the strong bullish trend.

Revenue & Profitability MTZ demonstrated strong quarter-over-quarter revenue growth, increasing from $3.54 billion to $3.97 billion, while its net profit margin improved significantly from 2.42% to 4.05%. The expansion in operating income ratio from 4.41% to 8.99% indicates enhanced operational efficiency contributing to profitability growth.

Financial Health The company maintains moderate leverage with a debt-to-equity ratio of 0.89 and a healthy interest coverage ratio of 7.85. However, the low cash ratio of 0.07 raises concerns about short-term liquidity, though the current ratio of 1.33 suggests adequate overall working capital management.

Operational Efficiency MTZ shows solid operational performance with ROE improving to 5.16% and asset turnover holding steady at 0.41. The exceptionally high inventory turnover of 30.65 reflects efficient inventory management, while the 54-day cash conversion cycle indicates effective working capital utilization.

Based on the provided metrics, MTZ appears overvalued on a trailing basis due to its exceptionally high TTM PE ratio of 59.77 and EV/EBITDA of 52.74, which suggest investors are paying a significant premium for current earnings. However, the forward PE of 25.73 indicates expected earnings growth is priced in, and the PEG ratio of 0.29, being well below 1.0, strongly signals the stock is undervalued relative to its growth prospects. The high Price-to-Book ratio of 6.65 further confirms the market is valuing the company's intangible assets and future earnings power far above its accounting net asset value.

A peer comparison cannot be conducted as industry average data is not available. To determine if MTZ's valuation multiples are justified, a comparison with the average PE, EV/EBITDA, and PEG ratios for the Industrial Machinery/Components & Supplies industry would be necessary. Without this context, the assessment remains isolated to the company's own metrics and growth expectations implied by the PEG ratio.

Volatility risk is elevated given MTZ's beta of 1.93, indicating the stock is roughly twice as volatile as the broader market. This high sensitivity to market movements is corroborated by a significant one-year maximum drawdown of -21.81%, demonstrating potential for substantial capital depreciation during downturns.

Other risks appear mitigated by the absence of short interest, which suggests a lack of significant negative sentiment from sophisticated investors. However, while this points to bullish conviction, the stock may still be subject to standard liquidity and sector-specific risks inherent to its industry.