Is it too late to consider buying MasTec, Inc. (NYSE:MTZ)?

Although MasTec, Inc. (NYSE:MTZ) may not have the largest market capitalization in the market, its stock price increased significantly by 29% over the past two months on the New York Stock Exchange. York. While this is good news for shareholders, the company has been trading at a much higher level over the past year. Since many analysts cover the mid-cap stock, we can expect any price-sensitive announcements to have already been factored into the stock price. However, could the stock still be trading at a relatively cheap price? Today, we’ll analyze the most recent data on MasTec’s prospects and valuation to see if the opportunity still exists.

See our latest analysis for MasTec

What is the opportunity at MasTec?

According to our valuation model, MasTec appears to be fairly valued, about 19% below our intrinsic value, meaning that if you buy MasTec today, you will be paying a fair price. And if you believe the stock is actually worth $132.57, then there is not much upside to be gained from a poor valuation. So, is there another chance to buy low in the future? Given that MasTec stock is quite volatile (i.e. its price movements are magnified relative to the rest of the market), this could mean that the price may decline, giving us an opportunity to buy later. This is based on its high beta, which is a good indicator of stock price volatility.

Can we expect growth from MasTec?

Future outlook is an important aspect when considering buying a stock, especially if you are an investor looking for growth for your portfolio. Although value investors argue that it’s the intrinsic value relative to price that matters most, a more compelling investment thesis would be high growth potential at a cheap price. MasTec’s revenue growth is expected to be in the range of 10% in the coming years, indicating a strong future. Unless expenses increase at the same level or more, this top-line growth should lead to strong cash flow, fueling a higher share value.

What this means for you

Are you a shareholder? MTZ’s optimistic future growth appears to have been factored into the current share price, with shares trading around their fair value. However, there are also other important factors that we haven’t considered today, such as the financial strength of the company. Have these factors changed since you last looked at the stock? Will you have enough conviction to buy if the price fluctuates below the true value?

Are you a potential investor? If you’ve been following MTZ closely, now might not be the ideal time to buy, given that the stock is trading around its fair value. However, the upbeat outlook is encouraging for the company, meaning it’s worth looking more closely at other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to learn more about MasTec as a company, it’s important to be aware of the risks it faces. For example, we found that MasTec has 2 warning signs (1 cannot be ignored!) which deserve your attention before going further in your analysis.

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

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

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