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Is MasTec (MTZ) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is MasTec (MTZ - Free Report) . MTZ is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.07 right now. For comparison, its industry sports an average P/E of 12.33. Over the past 52 weeks, MTZ's Forward P/E has been as high as 12.25 and as low as 8.81, with a median of 10.51.

MTZ is also sporting a PEG ratio of 1.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MTZ's industry has an average PEG of 1.71 right now. Within the past year, MTZ's PEG has been as high as 1.53 and as low as 0.72, with a median of 1.30.

These figures are just a handful of the metrics value investors tend to look at, but they help show that MasTec is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MTZ feels like a great value stock at the moment.


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