MasTec Trades at a Premium: Should Investors Buy the Stock or Fold?
MasTec (MTZ) benefits from record $21.4B backlog driven by AI infrastructure and data-center demand, with upward earnings momentum and strategic acquisitions. However, the stock faces headwinds from weak Communications segment performance (11.6% EBITDA decline), negative free cash flow of $59M in Q2, $2.42B net debt, and premium valuation at 20.3x forward P/E. The stock has fallen 19.4% over six months and carries a Zacks Rank #4 (Sell) rating.