For Immediate Release
Chicago, IL – July 17, 2026 – Zacks Equity Research shares MasTec, Inc. MTZ as the Bull of the Day and Papa John's International, Inc. PZZA as the Bear of the Day. In addition, Zacks Equity Research provides analysis on McDonald's Corp. MCD, Starbucks Corp. SBUX and Dutch Bros Inc. BROS.
Here is a synopsis of all five stocks:
Bull of the Day:
MasTec, Inc. is an infrastructure, engineering, and construction stock set to more than double its earnings between 2025 and 2027.
MTZ already doubled its revenue from 2020 to 2025 as it capitalizes on compounding megatrends across the AI-data center boom, energy demand growth, electrification, grid expansion, and beyond.
The picks-and-shovels infrastructure giant is physically building and upgrading critical energy, utility, and communications infrastructure across North America. MasTec's surging earnings revisions earn it a Zacks Rank #1 (Strong Buy), and it's part of a highly ranked Zacks industry, which is important since a rising tide is lifting the pure-play infrastructure companies.
MTZ stock has climbed 230% in the past two years as part of a much larger industry and S&P 500-beating run over the past decade. Yet, investors have a chance to buy the stock down ~22% from its May peaks, as MasTec attempts to find support at some vital technical ranges.
The AI hyperscalers, big tech, Wall Street, and the U.S. government are fully committed to winning the AI arms race and reshoring key manufacturing (semiconductors, rare earths, etc.) to dominate the rest of the century and beyond from an economic and technological standpoint.
MasTec is helping build this future that requires the massive expansion of U.S. energy generation, the grid, communication infrastructure, and more of the physical economy.
Best Stocks to Buy for the AI and Capex Spending Spree: MasTec
MasTec specializes in engineering, construction, installation, maintenance, and upgrades across communications, energy, utility, and other infrastructure.
The Florida-based firm operates across four core areas: Communications (wireless, fiber, and wireline infrastructure), Power Delivery (electrical transmission and distribution for utilities), Pipeline Infrastructure (primarily natural gas pipelines and distribution systems), and Clean Energy and Infrastructure (renewable energy such as solar/wind, plus heavy civil and industrial projects).
It more than doubled its revenue between 2020 and 2025, driven by impressive spending across its portfolio. MTZ's post-Covid expansion came after it doubled its sales between 2011 and 2019. Most recently, MasTec grew its Q1 2026 revenue by 34%, led by a 91% increase in Pipeline Infrastructure and a 45% increase in Clean Energy and Infrastructure.
MasTec also critically grew its GAAP earnings 516% and its adjusted earnings 174% in Q1, extending its huge bottom-line comeback after a rough patch in 2023 and 2022. The firm closed the first quarter with a record 18-month backlog of $20.3 billion, up $4.4 billion from the year-ago period.
The company announced on July 7 its plans to buy Electrical Specialists, Inc., d/b/a The Superior Group to help "enhance MasTec's position with leading hyperscalers, data center developers, general contractors and technology customers." MTZ expects the deal to boost its strategy of "building a scaled infrastructure capacity platform positioned to serve accelerating demand for data center, power and other mission-critical infrastructure."
For instance, U.S. electricity demand is projected to grow ~25% by 2030 and ~75% to ~100% by 2050. This growth is driven by power-hungry AI data centers, electrification, reshoring for semiconductor manufacturing, and other long-term trends that are only just beginning.
MasTec is building up its portfolio to position itself as a long-term winner in the broader AI-boosted infrastructure spending spree in the U.S. and North America that will be measured in decades and cost trillions of dollars.
MTZ's Growth Outlook is Driven By AI and Much More
MasTec's entire portfolio is growing directly alongside the converging infrastructure spending megatrends. The company is projected to expand its sales by 27% in 2026 (after 16% growth last year) and another 23% next year to $22.39 billion—more than tripling 2020's $6.32 billion.
More importantly, Zacks estimates showcase that MTZ is expected to boost its adjusted earnings by 46% in FY26 and 53% in 2027 to $14.63 a share, easily doubling 2025's $6.55.
MTZ's earnings outlook has jumped again recently (+12% for FY27 in the last 30 days), extending its strong trend over the last few years. MasTec's recent upward earnings revisions earn it a Zacks Rank #1 (Strong Buy).
The pick-and-shovels stock boasts a strong history of earnings beats, and the chart above showcases its robust longer-term earnings outlook.
Buy the AI Infrastructure Stock Now on the Dip and Hold Forever?
MasTec stock has skyrocketed ~2,500% over the past 20 years, blowing away the S&P 500's 550% and the highly ranked Building Products - Heavy Construction industry's 945%. This run includes a 230% charge in the past two years. Yet investors who missed out can buy MTZ down around 22% from its early May peaks.
Plus, its average Zacks price target ($496.63) implies ~40% upside from Thursday's price. MTZ is holding its ground at its early April highs before breaking out. Some traders might want to wait for a possible pullback to its 200-day (red line below).
However, playing the market timing game is no easy task. This is why investors with long-term mindsets might want to buy MTZ now and then add to their positions at the next meaningful downturn.
MasTec's earnings drop has also helped recalibrate its valuation, with the stock trading 33% below its high. Plus, 20 of the 21 brokerage recommendations Zacks has are "Strong Buys."
Bear of the Day:
Pizza giant, Papa John's International, Inc., has seen its earnings estimates steadily fall off a cliff over the last several years, driven by declining comparable sales, cost pressures, and heavy competition from its rivals such as Domino's.
PZZA's most recent wave of downward earnings revisions earn it a Zacks Rank #5 (Strong Sell).
PZZA Stock is Down 70%: It's Not Time to Buy the Dip Yet
Papa John's boasts that it is the third-largest pizza delivery company on the planet, with more than 6,000 restaurants in approximately 50 countries and territories. The firm operates across four main segments: Domestic Company-Owned Restaurants, North America Franchised Restaurants, North America Restaurants, and International Restaurants.
PZZA revenue dropped 3.6% in FY24 and slipped slightly in 2025. Its North America comparable sales fell 2% in FY25, with Domestic Company-owned restaurants down 3% and North America franchised restaurants down 2%. Worst still, its GAAP earnings tanked 64% YoY and its adjusted EPS fell 39%.
Most recently, its first-quarter 2026 revenue fell 7.7% YoY, with North America comparable sales down 6.4%. "In North America, results were in line with our expectations as we navigate the cautious consumer environment and promotional QSR marketplace," CEO and President Todd Penegor said in prepared remarks.
Its adjusted EPS also slipped 11% YoY, falling 20% short of our estimate. Papa John's earnings outlook has dropped significantly over the last 90 days, and its most accurate estimate for FY27 came in 9% below the already beaten-down consensus.
This backdrop earns PZZA a Zacks Rank #5 (Strong Sell) and has prolonged its string of negative EPS revisions over the last several years.
Papa John's faces intense competition from Domino's DPZ, Pizza Hut, and other chains, forcing discounting and promotions. The company is also struggling, alongside many others, with slower consumer spending as consumers around the U.S. pull back on non-essentials as inflation continues.
Some investors might consider taking a bite out of Papa John's stock since it is already down 70% over the past five years. But it could be best for investors to stay away from Papa John's shares, at least for now.
Additional content:
Can McDonald's Global Marketing Strategy Drive Customer Traffic?
McDonald's Corp. has been reinforcing customer engagement through a global marketing strategy built around cultural relevance, entertainment partnerships and localized campaigns. While value and menu innovation remain central to the company's growth strategy, marketing has become an important tool for attracting new customers, strengthening brand engagement and supporting restaurant traffic across key markets.
During the first quarter of 2026, McDonald's combined globally recognized entertainment brands with locally relevant campaigns to reach customers across different age groups and occasions. Initiatives included the Friends collectibles campaign in several international markets, a Super Mario Happy Meal promotion and a Netflix KPop Demon Hunters partnership that integrated digital activation through the McDonald's app.
The company also expanded successful campaigns across multiple countries, allowing local ideas to reach a broader audience while maintaining brand consistency. In the first quarter of 2026, this marketing approach supported global comparable sales growth of 3.8%, 6% rise in constant-currency systemwide sales and market share gains in nearly all of the company's top 10 markets.
The strategy extends beyond short-term promotional activity. Marketing is designed to complement value offerings and menu innovation, creating multiple reasons for customers to visit restaurants. Australia demonstrated this approach by pairing value menus, marketing activations, menu innovation and beverage initiatives, contributing to mid to high-single-digit comparable sales growth and a third consecutive quarter of market share gains.
As consumer spending remains uneven across many markets, McDonald's broad marketing platform, supported by global scale and local execution, could remain an important factor in sustaining customer traffic and reinforcing its competitive position.
MCD's Price Performance, Valuation & Estimates
Shares of McDonald's have dropped 11.7% in the past year compared with the industry's decline of 8.3%. In the same time frame, other industry players like, Starbucks Corp. has gained 12.8% and Dutch Bros Inc. has increased 0.6%.
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry's average of 3.29. Then again, other industry players, such as Starbucks and Dutch Bros, have P/S ratios of 3.02 and 4.78, respectively.
The Zacks Consensus Estimate for MCD's 2026 earnings per share has declined from $12.93 to $12.90 in the past seven days.
The company is likely to report strong earnings, with projections indicating a 5.7% year-over-year increase in 2026. Conversely, industry players like Dutch Bros are likely to rise 22.4% in 2026 earnings. Starbucks is likely to witness growth of 12.7% year over year in fiscal 2026 earnings.
MCD's Zacks Rank
MCD stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
McDonald's Corporation (MCD): Free Stock Analysis Report
Papa John's International, Inc. (PZZA): Free Stock Analysis Report
MasTec, Inc. (MTZ): Free Stock Analysis Report
Dutch Bros Inc. (BROS): Free Stock Analysis Report
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