Is It Time To Consider Buying MasTec, Inc. (NYSE:MTZ)?

MasTec, Inc. (NYSE:MTZ), might not be a large cap stock, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$122 and falling to the lows of US$69.57. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether MasTec's current trading price of US$66.93 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at MasTec’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for MasTec

What Is MasTec Worth?

Good news, investors! MasTec is still a bargain right now. According to my valuation, the intrinsic value for the stock is $89.95, but it is currently trading at US$66.93 on the share market, meaning that there is still an opportunity to buy now. However, given that MasTec’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will MasTec generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. In MasTec's case, its revenues over the next few years are expected to grow by 37%, indicating a highly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since MTZ is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on MTZ for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MTZ. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into MasTec, you'd also look into what risks it is currently facing. For example, MasTec has 2 warning signs (and 1 which is significant) we think you should know about.

If you are no longer interested in MasTec, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.