Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why MasTec Stock Jumped 14% Today

By Howard Smith - Jan 6, 2021 at 4:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The growing prospect of an infrastructure stimulus bill has put this construction company in the sweet spot.

What happened

Shares of North American infrastructure construction company MasTec ( MTZ -4.97% ) spiked 14% today, in a move shared by many stocks in the sector.

So what 

With the Georgia runoff Senate elections swept by the Democratic candidates, giving their party control of the House and Senate, investors today are swooping into sectors that may get more stimulus investment in the coming months and years. 

construction workers on energy project

Image source: Getty Images.

MasTec specializes in engineering and construction projects in energy, communication, and utility infrastructure, which could be the focus of a Biden agenda with a Democratic Congress.

Now what

Investors would welcome an influx of federal money to support projects in MasTec's area of expertise. Though deemed an essential business, its operations have been affected by the pandemic through "lost productivity from governmental permitting approval delays, reduced crew productivity due to social distancing, other mitigation measures, or other factors," according to the company's third-quarter earnings release. 

Current MasTec projects include cell tower construction, wind power generation, natural gas pipelines, and biodiesel plants. President-elect Biden has already voiced support for growing green energy, and communications projects will be expanding as 5G rolls out. 

This gives MasTec the potential to grow its project pipeline rather quickly, should federal bills be passed. In the quarter ended Sept. 30, even with the pandemic cutting total revenue by 16%, MasTec reported growing revenue in its clean energy and infrastructure, and electrical transmission segments. Investors today recognized that potential and piled into the stock.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MasTec, Inc. Stock Quote
MasTec, Inc.
MTZ
$87.48 (-4.97%) $-4.58

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
640%
 
S&P 500 Returns
139%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/03/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.