Bull of the Day: MasTec, Inc. (MTZ)

MasTec, Inc. MTZ is an infrastructure, engineering, and construction stock set to more than double its earnings between 2025 and 2027.  

MTZ already doubled its revenue from 2020 to 2025 as it capitalizes on compounding megatrends across the AI-data center boom, energy demand growth, electrification, grid expansion, and beyond.

The picks-and-shovels infrastructure giant is physically building and upgrading critical energy, utility, and communications infrastructure across North America. MasTec’s surging earnings revisions earn it a Zacks Rank #1 (Strong Buy), and it’s part of a highly ranked Zacks industry, which is important since a rising tide is lifting the pure-play infrastructure companies.

MTZ stock has climbed 230% in the past two years as part of a much larger industry and S&P 500-beating run over the past decade. Yet, investors have a chance to buy the stock down ~22% from its May peaks, as MasTec attempts to find support at some vital technical ranges. 

The AI hyperscalers, big tech, Wall Street, and the U.S. government are fully committed to winning the AI arms race and reshoring key manufacturing (semiconductors, rare earths, etc.) to dominate the rest of the century and beyond from an economic and technological standpoint.

MasTec is helping build this future that requires the massive expansion of U.S. energy generation, the grid, communication infrastructure, and more of the physical economy.

Best Stocks to Buy for the AI and Capex Spending Spree: MasTec

MasTec specializes in engineering, construction, installation, maintenance, and upgrades across communications, energy, utility, and other infrastructure.

The Florida-based firm operates across four core areas: Communications (wireless, fiber, and wireline infrastructure), Power Delivery (electrical transmission and distribution for utilities), Pipeline Infrastructure (primarily natural gas pipelines and distribution systems), and Clean Energy and Infrastructure (renewable energy such as solar/wind, plus heavy civil and industrial projects).

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It more than doubled its revenue between 2020 and 2025, driven by impressive spending across its portfolio. MTZ’s post-Covid expansion came after it doubled its sales between 2011 and 2019. Most recently, MasTec grew its Q1 2026 revenue by 34%, led by a 91% increase in Pipeline Infrastructure and a 45% increase in Clean Energy and Infrastructure.

MasTec also critically grew its GAAP earnings 516% and its adjusted earnings 174% in Q1, extending its huge bottom-line comeback after a rough patch in 2023 and 2022. The firm closed the first quarter with a record 18-month backlog of $20.3 billion, up $4.4 billion from the year-ago period.

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The company announced on July 7 its plans to buy Electrical Specialists, Inc., d/b/a The Superior Group to help “enhance MasTec’s position with leading hyperscalers, data center developers, general contractors and technology customers.” MTZ expects the deal to boost its strategy of “building a scaled infrastructure capacity platform positioned to serve accelerating demand for data center, power and other mission-critical infrastructure.”

For instance, U.S. electricity demand is projected to grow ~25% by 2030 and ~75% to ~100% by 2050. This growth is driven by power-hungry AI data centers, electrification, reshoring for semiconductor manufacturing, and other long-term trends that are only just beginning.

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MasTec is building up its portfolio to position itself as a long-term winner in the broader AI-boosted infrastructure spending spree in the U.S. and North America that will be measured in decades and cost trillions of dollars.

MTZ’s Growth Outlook is Driven By AI and Much More

MasTec’s entire portfolio is growing directly alongside the converging infrastructure spending megatrends. The company is projected to expand its sales by 27% in 2026 (after 16% growth last year) and another 23% next year to $22.39 billion—more than tripling 2020’s $6.32 billion.

More importantly, Zacks estimates showcase that MTZ is expected to boost its adjusted earnings by 46% in FY26 and 53% in 2027 to $14.63 a share, easily doubling 2025’s $6.55.

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MTZ’s earnings outlook has jumped again recently (+12% for FY27 in the last 30 days), extending its strong trend over the last few years. MasTec’s recent upward earnings revisions earn it a Zacks Rank #1 (Strong Buy).

The pick-and-shovels stock boasts a strong history of earnings beats, and the chart above showcases its robust longer-term earnings outlook. 

Buy the AI Infrastructure Stock Now on the Dip and Hold Forever?

MasTec stock has skyrocketed ~2,500% over the past 20 years, blowing away the S&P 500’s 550% and the highly ranked Building Products - Heavy Construction industry’s 945%. This run includes a 230% charge in the past two years. Yet investors who missed out can buy MTZ down around 22% from its early May peaks.

Plus, its average Zacks price target ($496.63) implies ~40% upside from Thursday’s price. MTZ is holding its ground at its early April highs before breaking out. Some traders might want to wait for a possible pullback to its 200-day (red line below).

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However, playing the market timing game is no easy task. This is why investors with long-term mindsets might want to buy MTZ now and then add to their positions at the next meaningful downturn.

MasTec’s earnings drop has also helped recalibrate its valuation, with the stock trading 33% below its high. Plus, 20 of the 21 brokerage recommendations Zacks has are “Strong Buys.”

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This article originally published on Zacks Investment Research (zacks.com).

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