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