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 $14.8 million.
  • MTZ has traded 353,319 shares today.
  • MTZ is trading at 12.21 times the normal volume for the stock at this time of day.
  • MTZ is trading at a new high 17.01% 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. MTZ has a PE ratio of 51. Currently there are 8 analysts that rate MasTec a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for MasTec has been 1.1 million shares per day over the past 30 days. MasTec has a market cap of $1.1 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.17 and a short float of 11.2% with 8.03 days to cover. Shares are down 16.5% 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

. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has significantly increased by 268.67% to $94.75 million when compared to the same quarter last year. In addition, MASTEC INC has also vastly surpassed the industry average cash flow growth rate of -23.58%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 17.3%. Since the same quarter one year prior, revenues fell by 15.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.04%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 84.21% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, MTZ is still more expensive than most of the other companies in its industry.
  • MASTEC INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MASTEC INC reported lower earnings of $1.43 versus $1.74 in the prior year. For the next year, the market is expecting a contraction of 61.5% in earnings ($0.55 versus $1.43).

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