MasTec Vulnerable For Downside Risk At $77?

SectorFinancial Markets
CountryMiddle east

KIEV, UKRAINE - 2018/12/30: In this photo illustration, the MasTec Engineering company logo seen ... [+] displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) LightRocket via Getty Images After a solid 3x rise since the March 23 levels of last year, at the current price of around $77 per share we believe MasTec Inc. stock (NYSE: MTZ), an infrastructure and construction company, has reached its near-term potential.

MTZ stock has rallied from $26 to $77, significantly outperforming the S&P which moved 70% over the same period, with the resumption of economic activities as lockdowns are gradually lifted and vaccines are being approved in multiple countries. The outperformance of MasTec can partly be attributed to better than estimated Q2 and Q3 earnings, clubbed with expected pickup in infrastructure projects when the new administration is formed. MTZ stock is also up 90% from levels of $40 seen in early 2019, two years ago. Much of the 90% rise of the last 2 years can primarily be attributed to changes in the company’s P/S (price-to-sales) multiple. Looking at fundamentals, total revenues were up 4% from $6.9 billion in 2018 to $7.2 billion more...