MasTec, Inc.'s (NYSE: MTZ) stock has gained nearly 31% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry's 24.5% growth, the broader Construction sector's 7.2% increase and the S&P 500 index's 8.6% rise.
This infrastructure construction company is banking on increasing demand for power, data capacity and network speed. Also, MTZ's focus on strategic investments for portfolio diversification positions it well for satiating increased infrastructure demand globally. Moreover, the company is optimistic about its growth opportunities in 2025 and beyond, given the solid pipeline across its businesses and acquisition synergies.
MTZ stock also outpaced its competitors like EMCOR Group, Inc. (NYSE: EME), Quanta Services, Inc. (NYSE: PWR) and AECOM (NYSE: ACM), which rallied 18.9%, 10.8% and 6.3%, respectively, in the six-month period.
Image Source: Zacks Investment Research
Technical indicators are supportive of MTZ's strong performance. As of Thursday, the stock is trading at $110.40, comfortably above its 50-day moving average of $106.62.
Image Source: Zacks Investment Research
What's Supporting MTZ Stock's Outperformance?
Strong Outlook for 2024: MasTec's robust 18-month backlog of $13.3 billion provides strong visibility into 2024. The company raised its full-year guidance, expecting consolidated revenues of $12.4 billion (prior expected $12.55 billion), up from $12 billion year over year. Adjusted EBITDA is projected to be $975 million, an increase from $860.3 million in 2023, with a margin improvement of 7.9% (up from 7.8% expected earlier and 7.2% reported in 2023).
Adjusted earnings per share are forecasted to be $3.03, up from $1.97 expected earlier. The Clean Energy and Infrastructure segment is expected to increase 10% in 2024, reaching ...
