Infrastructure investment across power delivery, communications, renewable energy, natural gas generation and civil construction continues to create opportunities for contractors with broad technical capabilities and strong execution. Growing electricity demand from AI and data center development, grid modernization, transmission expansion, broadband deployment and the need for more reliable energy infrastructure are supporting a healthy pipeline of large and complex projects.
MasTec NYSE: MTZ said it has entered into a definitive agreement to acquire The Superior Group, an electrical infrastructure contractor focused on data centers and other mission-critical markets, in a transaction valued at approximately $1.65 billion upfront.
The consensus price target hints at a 26.9% upside potential for MasTec (MTZ). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
MasTec Inc. (MTZ) shares climbed about 6% on Wednesday after the infrastructure engineering and construction company announced a $1.65 billion acquisition of electrical contractor The Superior Group. The deal expands its presence in the rapidly growing data center infrastructure market.
MTZ's acquisition of Superior Group expands its data center electrical capabilities and is expected to boost revenues, EBITDA, and EPS from 2026 onward.
MasTec, Inc. MTZ is currently trading at a premium compared with the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index, with a forward 12-month price-to-earnings (P/E) ratio of 35.62. The industry's average currently is 26.35, with the sector's valuation at 21.49 and the S&P 500 Index at 21.07.
MasTec, Inc. MTZ is strengthening revenue visibility through a growing pipeline of infrastructure projects across communications, power delivery, clean energy and pipeline markets. Strong demand across these end markets is improving the company's ability to sustain revenue growth while providing greater confidence in its long-term outlook.
MasTec remains a buy, benefiting from surging AI-driven data center and power infrastructure capex, with backlog growth nearing 30%. MTZ's Clean Energy and Power Delivery segments drive accelerated backlog and margin expansion, leveraging scale and execution expertise. Consensus projects EBITDA and earnings growth outpacing revenue through 2029, supporting elevated valuation multiples and a $466 YE27 price target.
MasTec (MTZ) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Here is how MasTec (MTZ) and United Rentals (URI) have performed compared to their sector so far this year.
MTZ's Communications unit is likely to gain from AI data center fiber demand, BEAD funding and record backlog as telecom fundamentals improve.
The surge in U.S. energy, communications and large-scale development infrastructure spending is being driven by several structural trends that are likely to persist for years rather than quarters. With the explosion in AI-related data center development, the expansion of generation, transmission and distribution network projects has accelerated.