Shares of MasTec, Inc. (MTZ) hit a new 52-week high of $43.49 on March 24, up from its previous high of $43.45 on March 7.
The stock closed at $43.25 at the end of trading yesterday, with a solid one-year return of about 47.9% and year-to-date return of about 32%, outperforming the S&P 500. The average volume of shares traded over the last three months was roughly 782K.
The Coral Gables, FL-based infrastructure construction company has a market cap of $3.3 billion and long-term expected earnings growth of 8%. The company has outperformed the Zacks Consensus Estimate in three out of the four trailing quarters with an average surprise of 6.33%.
Growth Drivers
Shares of MasTec have been rising, following its fourth-quarter 2013 results on Feb 27. The company reported a 13% year-over-year increase in its adjusted earnings to 53 cents per share. The reported figure beat the Zacks Consensus Estimate of 48 cents per share as well.
MasTec’s net sales increased 24% year on year to $1.16 billion in the quarter, surpassing the Zacks Consensus Estimate of $1086 million. Strong revenue growth across most segments drove the performance.
For 2014, MasTec expects revenues to be around $4.65 billion to $4.7 billion and adjusted EBITDA between $520 million and $525 million. The company now expects adjusted earnings per share in the range of $2.27–$2.30 per share.
The company recorded backlog of $4.1 billion at the end of 2013, a 23% increase from last year. During the fourth quarter, MasTec signed a three-year contract to provide 212 dedicated tower crews throughout the east coast. The company began providing crews late in the fourth quarter and expects to ramp up the activity throughout 2014.
Historically, the company has achieved strong returns from acquisitions, which have aided growth. Notably, the acquisition of Calgary-based Big Country Energy Services in 2013 helped MasTec to expand in Canada's dynamic energy sector.
Moreover, the company is witnessing strong momentum at its end markets. MasTec will benefit from growth opportunities, which will help it to improve both revenues and margins in the wireless, oil and gas pipeline, electrical transmission, fiber deployment and renewable power markets.
MasTec currently holds a Zacks Rank #2 (Buy).
Other Stocks to Consider
Investors interested in the same sector include Gibraltar Industries, Inc. (ROCK), Wolseley plc (WOSYY) and USG Corporation (USG). While Gibraltar sports a Zacks Rank #1 (Strong Buy), USG Corporation and Wolseley have a Zacks Rank #2 (Buy).
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