MasTec: A Good Buy Given Strong Backlog And Secular Tailwinds

Apr. 04, 2025 11:10 AM ETMasTec, Inc. (MTZ) StockMTZ
ABI Invest
194 Followers

Summary

  • MasTec, Inc. is well-positioned for near-term revenue growth due to a strong backlog and secular and regulatory growth drivers across its segments.
  • The company benefits from strong demand in telecom infrastructure, clean energy, and power delivery, despite near-term headwinds in the Pipeline Infrastructure segment.
  • Margin expansion is expected from operating leverage, better project pricing, and strategic project and customer selection, supported by a healthy balance sheet for M&As.
  • MTZ stock is undervalued compared to historical averages and peers, making it an attractive buy given its strong growth prospects and favorable valuation.

Stock Market Data

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Investment Thesis

MasTec, Inc. (NYSE:MTZ) is well-positioned to benefit from its strong backlog, which offers good visibility for its near-term revenue growth. Further, there are several secular and regulatory growth drivers across its segments. In the Communications segment, the company should benefit from

This article was written by

194 Followers
I have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managing my own money and my purpose here is to share my views and benefit from the insights of the Seeking Alpha user community. Feel free to provide your feedback on my thesis in the comment section and I would love to have a discussion even if you have a variant view. My strategy is medium-term investing in ideas where there is a catalyst to unlock value and drive upside or short selling in case there is a downside catalyst. I also like to invest in growth stories available at a reasonable price. In terms of sector preferences, I am a generalist. However, I had spent most of my professional career analyzing industrial, consumer, and technology sectors. So, this is where I usually have higher conviction while investing.

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