MasTec Inc (NYSE:MTZ) Blends Strong Earnings Growth with Bullish Technical Setup for Investors

Infrastructure construction company MasTec Inc (NYSE:MTZ) offers an interesting option for investors focused on growth, blending solid earnings improvement with a positive technical outlook. The stock fits a screening method that finds companies displaying both financial growth and potential for technical breakouts, a strategy commonly used by CANSLIM and Minervini-style investors. This method looks for stocks with improving earnings, wider profit margins, and rising analyst estimates, alongside stable price patterns.

Key Financial Growth Points

MasTec's financial profile includes features that growth investors often target:

• Strong EPS Growth: The company reported 107.8% year-over-year EPS growth (TTM), with recent quarterly growth rates rising further – 492.3% in Q-1 and 55.2% in the latest quarter.
• Rising Free Cash Flow: FCF growth of 945.5% over the past year highlights solid cash generation alongside earnings improvement.
• Better Margins: Quarterly profit margins increased from 0.35% to 2.42% in the most recent quarter, reflecting improved operations.
• Consistent Earnings Beats: MTZ has exceeded EPS estimates in each of the last four quarters by an average of 25.6%.
• Higher Estimates: Analyst projections for next year's EPS have risen by 8.3% over the past three months.

These figures match the ChartMill High Growth Momentum Rating of 6, which assesses short-term earnings trends, growth speed, and quality – all important for investors seeking companies with rising earnings.

Technical Performance and Setup

The technical analysis report highlights why MTZ has an appealing chart setup:

• Top Technical Rating (10/10): The stock displays strong performance (beating 91% of stocks over the past year) with both short-term and long-term trends clearly positive.
• Stable Consolidation: With a Setup Rating of 7, MTZ has traded in a $160.08-$194.00 range over the past month, now positioned in the middle. The report mentions "lower volatility while prices have been steady."
• Support Areas: Multiple support levels exist between $174.04-$180.20, offering clear points for stop placement.
• Moving Average Trends: All key moving averages (20, 50, 100, and 200-day) are rising and correctly ordered, confirming the upward trend.

The technical setup indicates MTZ is stabilizing after a strong rise, possibly providing an entry point before its next move higher. The mix of strong financial growth and this technical pattern creates what many growth investors seek – a stock in a confirmed uptrend pausing before potentially continuing upward.

Why These Factors Are Important

The screening approach combining High Growth Momentum with technical setup quality aims to find companies where:

1. Financial trends suggest earnings growth is speeding up (increasing the chance of further price gains)
2. The technical pattern shows the stock is both in a clear uptrend and currently forming a stable phase (offering a potentially safer entry point)

MTZ demonstrates this combination – its sharp earnings improvement and wider margins provide the financial foundation, while its chart shows the stock has been holding gains steadily within an ongoing uptrend.

For investors looking to find more stocks that meet these High Growth Momentum with technical breakout criteria, the screen can be viewed here. The screen updates daily to spot new opportunities that combine solid growth traits with stable technical patterns.

Disclaimer: This analysis is for informational purposes only and should not be seen as investment advice. Always do your own research and consider your risk tolerance before making investment decisions.