MasTec: The Risk Is Currently To The Upside

Summary:

* MasTec recently reported better-than-expected Q3 2020 earnings and management provided solid Q4 2020 guidance. * The company's quarterly operating metrics were well-received by the market, and I believe that MasTec is well-positioned for 2021 and beyond. * We are long MasTec, and we plan to add to our position on any significant pullbacks.

MasTec ($MTZ) is a small-cap infrastructure construction company that has been negatively impacted by the disruptions of the global pandemic. The company reported lackluster operating results over the first half of 2020, so it should come as no surprise that MasTec's stock has underperformed the broader market by a wide margin. However, as shown, MTZ shares have performed well since the March/April 2020 lows. And looking forward, there is a lot to like about this company as I believe that the significant underperformance has created a buying opportunity for investors that are interested in a company that has great long-term business prospects.