MasTec Inc (NYSE:MTZ) Presents a High Growth Momentum and Technical Breakout Case

Infrastructure construction company MASTEC INC (NYSE:MTZ) presents a noteworthy case for investors using a high growth momentum strategy joined with technical breakout analysis. This method aims to find companies showing strong and speeding up fundamental growth, which is then confirmed by a technically sound chart pattern indicating a possible entry point. The process depends on the ChartMill High Growth Momentum Rating, which combines earnings momentum, sales acceleration, and analyst revisions, and matches it with proprietary Technical and Setup Quality Ratings to identify stocks that are both fundamentally sound and technically ready for a move.

Fundamental Growth Momentum

MasTec shows a High Growth Momentum Rating of 6, pointing to good underlying growth features that fit the strategy's main ideas. The company is displaying notable earnings power and positive movement across important measures.

• Strong Earnings Growth: The company's trailing twelve-month (TTM) EPS has increased by almost 90% year-over-year. This fast growth is not a single occurrence, as shown in the recent quarterly performance:
  • Last Quarter (Q2Q): 52.1% growth
  • Previous Quarter (Q-1): 55.2% growth
  • Quarter Q-2: 492.3% growth
• Consistent Earnings Surprises: A key part of momentum investing is a company's capacity to surpass expectations. MasTec has exceeded EPS estimates in all of the last four quarters, with an average surprise of 19.5%.
• Growing Profitability: The profit margin has displayed a clear improvement, increasing from 0.35% two quarters ago to 4.05% in the most recent quarter. This growth is a main point assessed by the momentum rating, indicating better operational efficiency.
• Positive Analyst Sentiment: Analyst estimates for the next fiscal year have been adjusted upwards by 3.8% over the last three months, showing increasing confidence in the company's future earnings potential.

These elements together create a view of a company in a solid growth period, satisfying the fundamental standards that high growth momentum investors look for.

Technical Strength and Setup Quality

From a technical viewpoint, MasTec's profile is also positive. The stock receives a good Technical Rating of 8, reflecting its general health and trend. A closer examination of the technical report shows several supporting factors.

• Long-Term Outperformance: MasTec is performing better than 85% of all stocks in the market on a yearly performance basis, a sign of market leadership.
• Good Trend Foundation: The long-term trend stays positive, supported by the stock trading above key rising moving averages (SMA50, SMA100, SMA200).

Accompanying the good technicals is a Setup Rating of 7. This score measures the quality of the current chart pattern, finding possible consolidation areas that often come before a new upward move. The analysis shows lower volatility with prices consolidating in a set range. A defined resistance zone is noted just above the current price, starting at $215.82, which could act as a possible breakout level. Below, a notable support zone is present around $196.65, giving a logical area for a stop-loss order to handle risk. This formation offers a structured setup where a clear move above resistance could indicate the next bullish phase.

Conclusion

MasTec stands as a notable candidate for high growth momentum investors, as it effectively joins sound fundamental growth with a technically positive chart pattern. The company's strong earnings acceleration, steady positive surprises, and growing margins meet the main needs of the growth momentum strategy. At the same time, its high technical rating and clear setup give a structure for finding a possible entry point, matching price action with the positive fundamental story.

For investors interested in finding other companies that fit this specific mix of high growth and technical breakout setups, more research can be done using the predefined screen: Find More High Growth Momentum Breakout Setups.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented should not be used as the only basis for making any investment decision. Always conduct your own due diligence and consult with a qualified financial advisor before making any investment.