MasTec Stock Trades Near 52-Week High: How Should You Play the Stock?

MasTec, Inc. (MTZ) has captured the attention of investors in the market recently with its impressive performance. After hovering above $219 per share for the past four trading sessions, the stock reached a 52-week high of $221.83 on Monday. The stock is currently trading at $212.98, marking a 1.8% discount from the previous day's closing price of $216.80.Shares of MasTec have surged 56.5% in the year-to-date period, outperforming 45.5% growth in the Zacks Building Products – Heavy Construction industry. The stock has also surpassed the broader Construction sector's 5.1% rise and the S&P 500 index’s 15.1% growth during the same period. Image Source: Zacks Investment Research This Florida-based infrastructure construction company is capitalizing on strong demand across key markets. Expansion in fiber networks and wireless projects is driving growth in the communications segment, supported by robust customer investments in broadband and data centers. Increased utility spending on grid modernization continues to strengthen the power delivery business, while renewables and infrastructure projects are supporting higher margins in clean energy. A record backlog and rising new awards suggest future growth, reinforcing the company’s raised 2025 guidance.The MTZ stock has outperformed some other players, including AECOM (ACM), EMCOR Group, Inc. (EME) and Fluor Corporation (FLR). In the year-to-date period, AECOM and EMCOR have rallied 21.1% and 48.3%, respectively, while Flour has lost 12.9%. Let us look at the factors driving this performance.Key Drivers of MasTec’s Stock PerformanceExpanding Communications & Data Infrastructure: The company continues to benefit from expanding opportunities in communications and data infrastructure. Fiber expansion and wireless build-outs remain major growth drivers as telecom and technology companies invest in faster networks and broader coverage.Rising demand from hyperscalers for data center connectivity and AI-related infrastructure is further supporting growth momentum. Federal broadband programs are also providing a steady flow of projects. In the second quarter of 2025, communications backlog rose 13% year over year to a record $5 billion, reflecting healthy demand across both fiber and wireless projects.Growing Clean Energy & Infrastructure Investments: The clean energy and infrastructure segment continues to gain from rising investment in renewables and related infrastructure. Supportive legislation and extended tax credits have provided long-term stability, while utilities and developers accelerate renewable power installations to meet growing energy needs.In the second quarter of 2025, segment backlog rose 11% sequentially to a record $4.9 billion, supported by new awards across renewables and infrastructure projects. With bookings already extending into 2026, the segment remains positioned for steady growth, backed by favorable policy and strong customer demand.Improving Profitability Through Operational Efficiency: The company remains focused on strengthening profitability through better execution and cost control across non-pipeline operations.Communications, Power Delivery, and Clean Energy and Infrastructure continue to show consistent progress, supported by rising demand in telecom, grid modernization and renewables. In the second quarter of 2025, non-pipeline EBITDA grew strongly on higher revenues, reflecting improved efficiency and operating leverage.Communications and Power Delivery posted sequential margin gains, while Clean Energy maintained steady performance. With stronger volumes expected in the second half, the company anticipates continued improvement in margins through the rest of 2025.Solid Backlog Growth: A growing backlog continues to strengthen the company’s outlook and provide multi-year revenue visibility. As of June 30, 2025, the 18-month backlog stood at $16.45 billion, up 23% year over year and 4% sequentially. Growth was led by clean energy and infrastructure bookings, supported by contributions from communications and power delivery.The company raised its 2025 guidance following its strong performance, with revenues expected between $13.9 billion and $14 billion. A record backlog and solid execution across key segments continue to reinforce the company’s long-term growth visibility.Factors to Weigh on PerformanceThe company continues to face near-term challenges in its Pipeline Infrastructure segment due to uneven capital spending and project timing. The completion of the Mountain Valley Pipeline in 2024 created a tough comparison, resulting in lower revenues in the first half of 2025. Initial expectations for the segment were $1.8 billion, whereas it reported $2.1 billion in 2024. Although guidance was later raised to about $2 billion, the company indicated that gaps between large projects have caused short-term softness, reflecting the segment’s reliance on major project cycles.Ongoing investments to expand capacity are also pressuring near-term margins. The company added roughly 4,000 employees in the second quarter and increased equipment spending to meet expected demand in 2026 and beyond. These additions are expected to support long-term execution but are weighing on 2025 profitability. The company expects margins to gradually recover in the second half of the year as utilization improves.MTZ Stock Valuation InsightsMasTec’s shares are currently trading at a forward 12-month price-to-earnings (P/E) ratio of 28.76, a 22.6% premium to the industry average of 23.26. Image Source: Zacks Investment Research The MTZ stock appears overvalued compared with peer companies, with AECOM, EMCOR and Fluor trading at forward P/E ratios of 22.47, 25.34 and 19.09, respectively.MTZ’s EPS Estimate TrendMTZ’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days to $6.32 and $7.73 per share, respectively. The estimated figures imply year-over-year growth of 60% and 22.4%, respectively. Image Source: Zacks Investment Research Conclusion: Buy, Sell or Hold MTZ StockMasTec remains on a solid footing with broad-based strength across communications, clean energy and power delivery segments. Strong execution, higher backlog and improving non-pipeline margins underline the company’s ability to capture opportunities from data infrastructure, grid modernization and renewable investments. These factors provide good visibility and support a favorable long-term outlook.That said, near-term headwinds persist. The timing gap between large pipeline projects and rising costs from capacity expansion continues to weigh on margins in 2025. However, these are viewed as short-term issues, with management expecting improvement as utilization and project flow strengthen in the second half of the year.Overall, MasTec’s fundamentals appear steady, supported by solid execution and diversified market exposure. With earnings growth expected to remain strong, MTZ carries a Zacks Rank #3 (Hold), indicating investors may consider maintaining positions while keeping an eye on near-term trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluor Corporation (FLR): Free Stock Analysis Report AECOM (ACM): Free Stock Analysis Report EMCOR Group, Inc. (EME): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks