What: Shares of construction contractor MasTec, (MTZ +5.93%) fell 10% in trading Monday as the market's drop took a toll on energy companies.
So what: Energy stocks were hammered across the board today and MasTec was hit with the sell-off despite there not being any specific news out about the company. As the theory goes, if the global economy slows down and energy prices decline there will be less need for everything from oil & gas pipelines to electricity transmission lines to water and sewer construction.
Another concern is that the strong economy in the U.S. may lead the Federal Reserve to raise interest rates, which could dampen demand for renewable energy projects, which is a growth market for MasTec.
Now what: All of these potential negatives are really just speculation from a market looking for a reason to sell-off shares today. Long-term investors should look at MasTec's impressive $4.6 billion backlog and the tailwinds the company has in transmission and renewable energy as strengths for the company in an uncertain energy environment.
When the market goes through a massive sell-off like it's doing today there are stocks that get thrown out with the bathwater and that's what I think is going on with MasTec today.
