Check out this stock poised to benefit from a run

Since everyone focuses on tech stocks and AI hype, names like Nvidia Corp. NASDAQ:NVDA continue to exceed expectations and surpass all-time high prices. You can focus on other undervalued sectors of the economy, such as construction stocks.

Actions like MasTec Inc. New York Stock Exchange: MTZ can expose your portfolio to subsequent potential sector rallies. It is one of the names in energy infrastructure and construction that may soon emerge.

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While the markets have outperformed their charts to bring you new all-time high prices, they may be getting ahead of themselves in the cut expectation. Initially believing that the Federal Reserve (the Fed) would act in March, traders are now moving away from that timeline and weighing a move towards May or June of this year.

You can see it live by following the FedWatch tool offered by ECM Group NASDAQ: ECMbut what do these cuts mean for the construction sector?

Warren Buffett bought names like DR Horton Inc. NYSE: DHI because most mortgages are held at rates below 3.3%. By comparison, new mortgages today are around 7.4%.

Homebuyers are not incentivized to sell their property as they would have to purchase another home at a much higher price and financing rate. Likewise, new home buyers don’t particularly want to pay a high mortgage and high five-year home prices.

Analysts at The Goldman Sachs Group NYSE:GS have expressed their perspectives on the manufacturing sector in the United States, which is nothing short of a boom. As the ISM Manufacturing PMI has been contracting over the past year, Fed cuts may push the business cycle back into a roaring bull cycle.

Naturally, this benefits expansionary activity in sectors like utilities and energy stocks, which may also be why similar names Marathon oil NYSE:MRO they have an upside of 30.4% compared to analysts’ price targets, reaching $31.2 per share.

Likewise, MasTec analysts see a similar 31.9% upside in their targets of $94.20 per share, something the market is willing to support today.

What is the view?

MasTec shares are trading at a huge 57% discount to their 52-week high prices, raising some concerns about whether it could be a good investment today.

This is especially interesting when you see other similar titles caterpillar NYSE:CAT trading at 97% of 52-week highs, also supporting the infrastructure construction play.

Analysts are targeting MasTec’s earnings per share growth of 55.6% over the next 12 months, much higher than the industry average of 11.7%. Given these optimistic growth targets, plus the discount to previous highs, the markets aren’t shy about letting you know how much they appreciate this deal.

While the rest of the peer group is valued at an average P/E ratio of 15.9x, you can buy MasTec stock for a much higher P/E of 40.3x. The saying “it has to be expensive for a reason” applies here, and now you have a better idea of ​​that reason.

It shouldn’t surprise you to see how analysts work UBS Group New York Stock Exchange: UBS they raised their price targets on the stock to $92 per share this month, which could be the first domino to fall in a wave of further analyst upgrades for this rally in the making.

Before you consider NVIDIA, you’ll want to hear this.

MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and NVIDIA wasn’t on the list.

While NVIDIA currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here