Why MasTec (MTZ) Stock Is Up Today

Stock Story

What Happened?

Shares of infrastructure construction company MasTec jumped 3.1% in the afternoon session after Truist Securities raised its price target on the infrastructure construction company's stock from $253 to $270.

Analyst Jamie Cook maintained a 'Buy' rating on the shares. This adjustment represented a 6.72% increase in the price target. Such upward revisions from financial analysts can signal a positive outlook on a company's potential growth trajectory. Investors often view these actions as a vote of confidence, which can lead to increased buying activity. According to reports, this move was part of a broader trend of positive sentiment from analysts covering MasTec in recent months.

After the initial pop the shares cooled down to $214.99, up 2.7% from previous close.

What Is The Market Telling Us

MasTec’s shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 28 days ago when the stock gained 3.3% on the news that an analyst at Goldman Sachs reiterated a 'Buy' rating on the stock and increased its price target.

The price forecast was raised to $245 from $227. This action was part of a broader positive view from market analysts, with MasTec holding a "Strong Buy" consensus rating based on 16 buy ratings and one hold rating from Wall Street analysts. The positive sentiment also followed an 18% increase in the stock's value since early September. Reports noted the company was actively expanding into new markets, which presented opportunities for improved margins, particularly in the communications segment.

MasTec is up 53.6% since the beginning of the year, and at $214.99 per share, it is trading close to its 52-week high of $232.94 from December 2025. Investors who bought $1,000 worth of MasTec’s shares 5 years ago would now be looking at an investment worth $3,253.

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MasTec Is Maintained at Buy by Truist Securities

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MasTec

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MasTec Is Maintained at Buy by Stifel

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MasTec

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(17:36 GMT) MasTec Price Target Raised to $267.00/Share From $240.00 by Stifel

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MasTec (MTZ): Buy, Sell, or Hold Post Q3 Earnings?

Stock Story

MasTec

+4.00%

MasTec currently trades at $218.54 and has been a dream stock for shareholders. It’s returned 249% since December 2020, tripling the S&P 500’s 84.3% gain. The company has also beaten the index over the past six months as its stock price is up 38.6% thanks to its solid quarterly results.

Is now the time to buy MasTec, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free for active Edge members.

Why Is MasTec Not Exciting?

Despite the momentum, we don't have much confidence in MasTec. Here are three reasons why MTZ doesn't excite us and a stock we'd rather own.

1. Low Gross Margin Reveals Weak Structural Profitability

All else equal, we prefer higher gross margins because they usually indicate that a company sells more differentiated products and commands stronger pricing power.

MasTec has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 12.9% gross margin over the last five years. Said differently, MasTec had to pay a chunky $87.07 to its suppliers for every $100 in revenue.

2. Weak Operating Margin Could Cause Trouble

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

MasTec was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.1% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.

MasTec Trailing 12-Month Operating Margin (GAAP)

3. Free Cash Flow Margin Dropping

If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.

As you can see below, MasTec’s margin dropped by 4.2 percentage points over the last five years. This along with its unexciting margin put the company in a tough spot, and shareholders are likely hoping it can reverse course. If the trend continues, it could signal it’s becoming a more capital-intensive business. MasTec’s free cash flow margin for the trailing 12 months was 3%.

MasTec Trailing 12-Month Free Cash Flow Margin

Final Judgment

MasTec isn’t a terrible business, but it isn’t one of our picks. With its shares outperforming the market lately, the stock trades at 28× forward P/E (or $218.54 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. Let us point you toward a top digital advertising platform riding the creator economy.

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Winners And Losers Of Q3: Dycom (NYSE:DY) Vs The Rest Of The Engineering and Design Services Stocks

Stock Story

Sterling Infrastructure

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how engineering and design services stocks fared in Q3, starting with Dycom .

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.

The 5 engineering and design services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Dycom

Working alongside some of the most popular mobile carriers in the world, Dycom builds and maintains telecommunications infrastructure.

Dycom reported revenues of $1.45 billion, up 14.1% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

“We delivered an exceptional third quarter with record revenue, profitability and backlog, reinforcing our industry leadership and operational discipline. As a result of our strong performance, we are increasing the midpoint of our full-year revenue outlook,” said Dan Peyovich, Dycom’s President and Chief Executive Officer.

Interestingly, the stock is up 10.2% since reporting and currently trades at $326.49.

We think Dycom is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Sterling

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure provides civil infrastructure construction.

Sterling reported revenues of $689 million, up 16% year on year, outperforming analysts’ expectations by 11.3%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Sterling achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $316.05.

Is now the time to buy Sterling? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: AECOM

Founded in 1990 when a group of engineers from five companies decided to merge, AECOM provides various infrastructure consulting services.

AECOM reported revenues of $4.18 billion, up 1.6% year on year, falling short of analysts’ expectations by 3.3%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates and full-year EBITDA guidance slightly missing analysts’ expectations.

AECOM delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22% since the results and currently trades at $102.92.

Read our full analysis of AECOM’s results here.

EMCOR

Through its network of over 70 subsidiaries, EMCOR provides electrical, mechanical, and building construction and services

EMCOR reported revenues of $4.30 billion, up 16.4% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as its performance in some other areas of the business was disappointing.

EMCOR had the weakest full-year guidance update among its peers. The stock is down 25.2% since reporting and currently trades at $581.36.

Read our full, actionable report on EMCOR here, it’s free for active Edge members.

MasTec

Involved in the 1996 Olympic Games MasTec is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

MasTec reported revenues of $3.97 billion, up 22% year on year. This print topped analysts’ expectations by 1.6%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

MasTec achieved the fastest revenue growth among its peers. The stock is down 9.7% since reporting and currently trades at $193.10.

Read our full, actionable report on MasTec here, it’s free for active Edge members.

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MasTec Stock Down 8% Post Q3 Earnings: Should You Buy the Dip or Fold?

Zacks

MasTec, Inc. MTZ trended downward 7.9% since reporting its third-quarter 2025 financial results on Oct. 30, underperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index, but outperforming the broader Zacks Construction sector.

This Florida-based infrastructure construction company’s third-quarter 2025 adjusted earnings of $2.48 per share and revenues of $3.97 billion topped the Zacks Consensus Estimate by 7.4% and 1.6%, respectively. Year over year, the metrics grew 48% and 22%, respectively, driven by strong activity across communications, clean energy and power delivery markets. Besides, a record backlog highlighted persistent demand tied to energy transition and infrastructure investment, helping MTZ beat expectations on both revenues and earnings. (read more: MasTec Beats Q3 Earnings & Revenue Estimates, Books Solid Backlog)

However, despite incremental revenue growth, investors’ sentiments are expected to have dropped, given the company's dim near-term prospects. Ongoing project delays, increasing expenses and costs, and a challenging macroeconomic scenario are causing the tide.

Let us decode the positives and the negatives that are molding MasTec stock’s prospects.

What is Driving MasTec’s Momentum?

Robust Renewables Market: The company has been witnessing incremental demand growth in the renewables market, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this market trend. MasTec offers services for renewables projects through its Clean Energy and Infrastructure segment, whose 18-month backlog grew 21.4% year over year on strong renewables demand, mainly solar.

Moreover, during the third quarter of 2025, MTZ highlighted 50% year-over-year revenue growth of the renewables business, mainly driven by solid demand for new renewable power installations. With 2025 about to end, for 2026, the company remains optimistic about this market’s favorable trends, given the strong pipeline of projects, including solar and wind.

Rebound of the Pipeline Segment: After going through a rough patch since the start of 2025, MasTec’s Pipeline Infrastructure segment witnessed exceptional growth in the third quarter of 2025. The segment’s revenues grew 20% year over year to $597.8 million, with EBITDA margin showing sequential growth of 390 basis points to 15.4%. Increasing multi-year spending across grid reliability, LNG expansion and energy transition infrastructure is driving the momentum.

The key to success lies in an improved bidding discipline, a more favorable mix of midstream projects, better project execution and healthier backlog conversion. Moreover, a favorable market environment created by the government funding initiatives is catalyzing the growth, mainly across energy, power and infrastructure markets. If MasTec can maintain stronger execution while capitalizing on rising midstream investment, the pipeline rebound may be in its early innings.

Sufficient Liquidity: As of Sept. 30, 2025, MTZ had $231.4 million worth of cash and cash equivalents compared with $399.9 million as of 2024. Total liquidity as of the third quarter of 2025 was $2 billion, slightly up from $1.9 billion in the year-ago period. With the current liquidity position, the company can meet its short-term obligations of $157.4 million.

EPS Trend Favors MTZ

For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 in the past 30 days. The revised estimated figures for 2025 and 2026 imply 60.8% and 27% year-over-year growth, respectively.

Understanding MasTec’s Competitive Position

In the energy, power and infrastructure markets, MasTec faces substantial competition from renowned players, including EMCOR Group, Inc. EME, Quanta Services, Inc. PWR and Primoris Services Corporation PRIM.

EMCOR competes through a vast mechanical and electrical services network, giving it regional reach in industrial, commercial and utility markets where recurring maintenance, facility upgrades and distributed-energy projects offer steady revenues. Quanta represents its strongest peer in electric power, with unmatched transmission and distribution depth and long-standing utility relationships. These aspects consistently place it at the center of major grid-hardening and high-voltage projects. On the other hand, Primoris Services continues to scale rapidly, using project agility and strong MSAs to expand in solar, gas infrastructure and civil work, often capturing growth pockets earlier than larger peers.

It is known that accelerated renewable deployment, rising grid congestion, electrification of transport and industry, and federal incentives are expanding the opportunities across the sector. In this market, MasTec does hold a competitive advantage in its ability to deliver large, multi-scope projects across power, energy and communications simultaneously, when compared with other peers like EMCOR, Quanta and Primoris Services.

What is Pulling Back MasTec?

Despite thriving in the energy and power markets, MasTec is facing several challenges that are impacting its revenue visibility and margin growth. It has been experiencing performance setbacks due to fluctuations in capital spending, alongside being continuously subject to project delays.

During the third quarter of 2025, the company toned down the 2025 revenue guidance for its Power Delivery segment to about $4.075 billion from the prior expected range of $4.225-$4.25 billion. This move was undertaken because of a lower level of activity related to its Greenlink project, as the customer is facing isolated delays due to permitting.

Moreover, increases in professional fees, alongside an unfavorable combination of project mix and reduced project efficiencies, primarily within the Pipeline Infrastructure and Power Delivery segments, are concerning to the bottom line. During the first nine months of 2025, MTZ’s general and administrative expenses increased 4.5% year over year to $523.9 million.

MTZ Trading at Premium

MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.36, as shown in the chart below.

Is It Wise to Include MTZ Stock in Portfolio Now?

As discussed above, the renewables and the energy market are boosting MasTec’s growth momentum. A record backlog and surging demand tied to the clean-energy transition further reinforce MasTec’s multi-year growth visibility. Besides, the sharp rebound of the Pipeline Infrastructure segment is a notable factor, given that improved project execution and favorable midstream spending trends are being encouraged.

However, persistent project delays, elevated costs and a challenged Power Delivery segment continue to weigh on sentiment. Reduced activity on major projects, higher professional fees and inefficiencies have pressured margins. In the long term, these headwinds might fade away, but in the near term, these risks are concerning the investors.

An uptrend in earnings estimates is enticing, but a premium valuation clouds the judgment at the same time. Currently, this Zacks Rank #3 (Hold) stock presents a mixed investment picture. So, based on the above discussion and trends of the technical indicators, it is prudent for existing investors to hold onto MTZ stock. New investors are advised to wait for now and look for a better entry point when the trends start favoring the stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This article originally published on Zacks Investment Research (zacks.com).

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Why MasTec (MTZ) Stock Is Up Today

Stock Story

MasTec

+4.00%

What Happened?

Shares of infrastructure construction company MasTec jumped 3.3% in the morning session after an analyst at Goldman Sachs reiterated a 'Buy' rating on the stock and increased its price target.

After the initial pop the shares cooled down to $200.60, up 1.8% from previous close.

Is now the time to buy MasTec? Access our full analysis report here.

What Is The Market Telling Us

MasTec’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock dropped 3.9% on the news that the company reported third-quarter results that included guidance that concerned investors. The company announced third-quarter revenue of $3.97 billion, a 22% increase from the prior year, and adjusted earnings of $2.48 per share, surpassing analyst expectations. Despite these strong headline numbers, investors appeared to focus on the company's outlook. MasTec's full-year guidance for adjusted EBITDA, a key measure of profitability, came in slightly below Wall Street's consensus estimate. This muted forecast seemed to overshadow the solid quarterly performance and an increase in the company's backlog, leading to a decline in the stock price as the market weighed the implications for future profitability.

MasTec is up 43.3% since the beginning of the year, but at $200.60 per share, it is still trading 9.4% below its 52-week high of $221.36 from October 2025. Investors who bought $1,000 worth of MasTec’s shares 5 years ago would now be looking at an investment worth $3,576.

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