Jim Cramer is Recommending These 10 Stocks in June

8. MasTec Inc (NYSE:MTZ)

Number of Hedge Fund Investors: 42

Florida-based infrastructure engineering and construction company MasTec Inc (NYSE:MTZ) is one of the best Jim Cramer stock recommendations in June. When asked about the stock, Cramer said MasTec Inc (NYSE:MTZ) is a “great infrastructure play.” Cramer said that MasTec Inc (NYSE:MTZ) is making a comeback.

“People say it’s down and out. No! That is a very good company. Jose R. Mas (MasTec CEO) is doing a terrific job. We like MTZ,” Cramer added.

Wall Street analysts are starting to talk about the stock, too. They believe despite low pricing power, the broader economic slowdown won’t impact specialty builders like MasTec Inc (NYSE:MTZ). Last year MasTec Inc’s (NYSE:MTZ) revenue jumped 23% to $12.0 billion, compared to $9.8 billion for the prior year.

Over the past one year the stock has slipped 0.8%. Despite its strong performance this year, some believe MasTec Inc (NYSE:MTZ) is undervalued. While its forward P/E of 35 is higher than the industry average, based on Wall Street’s estimates of a 49.70% earnings growth this year and 46% growth next year, the stock could be an attractive choice for long-term investors. Average analyst estimate for the stock is $121.69, which presents an 11% upside potential.

FPA Queens Road Small Cap Value Fund stated the following regarding MasTec, Inc. (NYSE:MTZ) in its first quarter 2024 investor letter:

“MasTec, Inc. (NYSE:MTZ) is a contractor that builds and repairs infrastructure for telecoms, electric utilities, oil and gas pipelines and the clean energy industry. The company benefits from strong spending for 5G in telecom and government support (including the Infrastructure Investment and Jobs Act) for clean energy and the electrical grid.10 The Mas brothers have an impressive history of rolling up smaller players and growing earnings, most recently in the electrical and clean energy spaces. But we became uncomfortable with the low margins and competition in the electrical utility and clean energy businesses. On Aug 4, 2023, in its Q2 2023 earnings release, the company reduced guidance, and we began to exit our position, partially in Q3 2023 and fully by the end of Q4 2023.”