Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 1 Nov, 24 | MTZ | Buy | USD 122.89 | USD 141.27 | USD 153.0 | 5 days | 24.5% |
Data Powered by EOD Historical Data (“EODHD”).
MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through five segments: Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, fiber, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy power generation; natural gas, carbon capture sequestration, and other product transport; electrical and gas transmission, and distribution systems; industrial and heavy civil infrastructure; compressor and pump stations, and treatment plants; and water infrastructure, including water pipelines. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and industrial and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, public and private energy providers, pipeline operators, heavy civil and industrial infrastructure providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.
Lower Credit Risk Exposure: Debt-Equity of 0.83x in Q3 FY24 vs Industry Median of 0.58x
Increasing Shareholders' Wealth: ROE of 3.4% in Q3 FY24 vs 0.5% in Q3 FY23
Lower Liquidity: Current Ratio of 1.24x in Q3 FY24 vs Industry Median of 1.39x
Higher Cash Cycle: 53.8 Days in Q3 FY24 vs Industry Median of 52.4 Days
Project Execution and Operational Risks, Large Client Concentration, Government Contracts, Integration Risks from Acquisitions, Unionization, Technology Disruption, Shifting Industry Trends, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 122.89 | 99.0 | 141.27 | 153.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
MTZ's share price found support at key levels and drifted higher, suggesting a potential for near-term upside. As the stock continues to rise, it is likely to encounter a key resistance level at USD 141.27, which may be tested in the short term, potentially within the next 2-4 weeks. If the stock successfully breaches this level, it could lead to further buying momentum and potentially extended gains in the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is rebounding from lower levels, indicating a positive bias. Trading volumes seem to confirm this upward trend. Furthermore, the stock price is close to reclaiming its 21-day Simple Moving Average (SMA), and achieving this milestone could attract additional buying interest.
As per the above-mentioned price action and technical indicators analysis, MasTec, Inc. (NYSE: MTZ) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock as on 01 November 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Engineering & Construction
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MTZ MasTec Inc |
0.45 0.33% | 137.01 | - | 16.29 | 0.47 | 2.06 | 0.76 | 11.66 |
| VCISF VINCI SA |
- -% | 105.21 | 14.66 | 12.94 | 1.06 | 2.37 | 1.40 | 8.24 |
| VCISY Vinci SA ADR |
0.05 0.20% | 25.44 | 14.51 | 12.97 | 1.07 | 2.38 | 1.40 | 8.26 |
| LTOUF Larsen & Toubro Limited |
- -% | 45.65 | 40.39 | 28.41 | 0.03 | 6.23 | 0.03 | 0.25 |
| PWR Quanta Services Inc |
-2.13 0.65% | 326.28 | 45.64 | 24.88 | 1.58 | 5.17 | 1.79 | 20.64 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 01, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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