Summary
- MasTec is a diversified infrastructure construction company — Communications, Oil and Gas, Power Generation, and Electrical Transmission.
- Their customers have giant CapEx spends built in through 2021 and maybe longer.
- They are perfectly positioned to take a big slice of this pie. Management proves their execution chops every quarter.
- The stock has run up 42% since my first recommendation, but I believe we are just at the beginning, and there is plenty of runway.
Is it weird that I think of an infrastructure construction company every time I hear this Boogie Down Productions classic?
Making Me Look Smarter Than I Am
The very first stock I wrote about here at Seeking Alpha, back last October, was MasTec (MTZ). They are making me look much smarter than I am.
MasTec has been my number one pick for 2019 and 2020 since last autumn, and that has not changed.
The elevator pitch:
- Diversified infrastructure construction: shale oil/gas; 5G/fiber rollouts; wind/solar construction.
- Their customers in these industries have huge CapEx spends this year, and probably through to 2021 if not longer.
- Management is executing, with no signs of stopping.
- They keep curb-stomping expectations, including my own.
So, for Q2, they are guiding to $1.8 billion in revenue and $1.11 EPS. My math gets to $1.14. My guess is they demolish both those numbers. Standard disclaimer: Only time will tell!
- Me, three months ago
Time did tell: $1.60. Also, not the first time:
Zacks. It should no longer be a "surprise".
I used to recommend waiting for a dip on MasTec, as they were frequent, deep and temporary, cued by a smaller dip in the market. But I'm not so sure anymore. MasTec just wants to go up now.
