MasTec (MTZ) Flagged As Strong On High Volume

Trade-Ideas LLC identified MasTec (MTZ) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

MasTec

(

MTZ

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified MasTec as such a stock due to the following factors:

  • MTZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.4 million.
  • MTZ has traded 66,176 shares today.
  • MTZ is trading at 3.51 times the normal volume for the stock at this time of day.
  • MTZ is trading at a new high 3.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on MTZ:

MasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, and utility infrastructure in the United States and internationally. Currently there are 9 analysts that rate MasTec a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for MasTec has been 792,100 shares per day over the past 30 days. MasTec has a market cap of $1.9 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.37 and a short float of 10.9% with 8.59 days to cover. Shares are up 37.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MasTec as a

hold

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Construction & Engineering industry. The net income increased by 57.0% when compared to the same quarter one year prior, rising from -$6.26 million to -$2.69 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • MASTEC INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MASTEC INC swung to a loss, reporting -$1.00 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($1.41 versus -$1.00).
  • The gross profit margin for MASTEC INC is currently extremely low, coming in at 9.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.27% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $15.85 million or 86.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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