Infrastructure construction company MasTec Inc (NYSE:MTZ) has surfaced in a screener built around the CAN SLIM methodology, a growth-investing system developed by William O’Neil and popularized in his book How to Make Money in Stocks. The system combines fundamental and technical analysis to identify stocks with strong earnings, accelerating sales, institutional support, and favorable market dynamics. Below, we break down why MTZ currently meets many of the core CAN SLIM criteria and what this means for growth-focused investors.
The CAN SLIM acronym stands for Current earnings, Annual earnings, New products/management, Supply & demand, Leader or laggard, Institutional sponsorship, and Market direction. Each letter represents a filter designed to flag companies that are not only growing but also showing momentum, institutional backing, and relative strength in the market. With the S&P 500’s long-term and short-term trends both positive, the market environment itself is supportive for such a screening approach.
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Recent Performance and Technical Setup
Looking at the technical picture first, MTZ scores a perfect 10 out of 10 on ChartMill’s technical rating, though it currently carries a setup rating of just 2. The stock is trading near its 52-week high of $401.19, with a current price of $394.05 — a new high that aligns with the “N” in CAN SLIM (new highs off properly formed bases). Its relative strength (CRS) stands at an extraordinary 97.08, meaning it has outperformed 97% of all stocks in the market over the relevant period. This satisfies the “L” criterion for being a market leader.
The technical report notes that MTZ’s short-term and long-term trends are both positive, and the stock is riding strong momentum: it’s up 18% in the past month, 64% over three months, 93% over six months, and 180% over the past year. This kind of consistent upward movement, combined with rising moving averages (the 20-day, 50-day, 100-day, and 200-day SMAs are all sloping upwards), reinforces the idea that MTZ is in a confirmed uptrend. The “M” in CAN SLIM — market direction — is also favorable here, as the broader market is trending positively.
Fundamental Strength: Earnings, Sales, and Growth
CAN SLIM places heavy emphasis on quarterly earnings and revenue growth — the “C” and “A” components. MTZ’s latest quarterly earnings per share (EPS) grew by 172.5% compared to the same quarter last year, far exceeding the 20% minimum typically used in CAN SLIM screens. Similarly, quarterly sales (revenue) grew 34.4% year-over-year, well above the typical 25% threshold. This combination of accelerating EPS and strong revenue growth is exactly what the system looks for in emerging growth stocks.
The “A” in CAN SLIM also requires sustained annual earnings growth. MTZ delivers here as well: its EPS has grown at a compound annual growth rate of 28.7% over the past three years, surpassing the 25% minimum screen. Return on equity (ROE) stands at 12.2%, which exceeds the 10% threshold used in the baseline CAN SLIM screen. While not extraordinary, this figure confirms the company is generating shareholder value.
The “S” criterion focuses on supply and demand, with an emphasis on low debt. MTZ’s debt-to-equity ratio is 0.67, comfortably below the 2.0 limit many CAN SLIM practitioners impose. The company also has strong liquidity metrics, with a current ratio of 1.32, and an Altman-Z score of 4.97 — well above the danger zone, indicating minimal bankruptcy risk.
Institutional and Industry Context
Institutional sponsorship — the “I” in CAN SLIM — is clearly present. Institutional ownership stands at 76.4%, which is below the 85% upper limit often used in screens. This level suggests institutions have already discovered the stock but haven’t saturated it, leaving room for further buying pressure. The fact that shares outstanding have been reduced over the past year also supports the supply-and-demand picture.
The company operates in the Construction & Engineering industry, where it outperforms 87% of its 55 peers in terms of technical performance. On the fundamental side, the overall rating sits at 4 out of 10, dragged down largely by valuation metrics (the price-to-earnings ratio is 53.0, well above the S&P 500 average of 26.8). However, CAN SLIM investors typically prioritize growth over cheap valuations, and the PEG ratio — which adjusts P/E for expected earnings growth — is neutral, suggesting the premium may be justified by future expansion. The fundamental analysis also highlights accelerating EPS growth estimates going forward, with projected EPS growth of 22.5% per year over the next several years.
For a more detailed look at the numbers, readers can review the full fundamental analysis report and the technical analysis report for MasTec.
The Verdict Through a CAN SLIM Lens
When stacked against the CAN SLIM criteria, MTZ passes nearly all major checks: explosive quarterly earnings and sales growth, sustained annual profit increases, rising relative strength, a healthy debt profile, institutional interest, and a positive market backdrop. The main caveat is its rich valuation, but in a growth-at-a-reasonable-price framework, the strong forward earnings expectations (25.96% annual EPS growth expected) help justify the multiple. The stock’s current technical setup is not ideal for immediate entry — prices have run up and a consolidation would be preferable — but as a watchlist candidate for CAN SLIM followers, it checks many boxes.
Find More CAN SLIM Candidates
This screen was built using the O’Neill CAN SLIM High Growth screener configuration. To explore other stocks that meet these criteria and run the same filters yourself, visit the CAN SLIM screener page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your financial situation before making any investment decisions.