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Small-Cap Stock #2: MasTec (MTZ)

MasTec (MTZ) plays a vital role in literally supporting the backbone of the U.S. economy: infrastructure.

For the last 75 years, MasTec has designed, built, installed, maintained and upgraded the telecommu­nications and utilities infrastructures of the U.S. This company has a hand in everything from telephone lines and high-speed Internet, to satellite and cable television services, to electric, water and natural gas utilities. All you have to do is look outside your window at the nearest telephone pole or glance across the fence at a neighbor's satellite dish to see where MTZ makes its money!

Recently, MasTec reported outstanding results for their fiscal fourth quarter. Revenue soared 51% to $414 million. Earnings-per-share soared from 11 cents for the fourth quarter of 2007 to 26 cents for the fourth quarter of 2008. That's a growth rate of 136%!

It's also worth noting that MTZ just completed its acquisition of a company that focuses on wind energy and natural gas facilities. This was a smart move because it expands MTZ's presence in the rapidly growing alternative energy and infrastructure construction business. The company expects to boost sales by $400 million in 2009 thanks to this purchase, and raised its full-year earnings forecast as a result.

I also expect President Obama's plan to spend $150 billion over the next decade on alternative energy and a "smart" utility grid to light a fire under MTZ's growth prospects.

By my estimate, MasTec trades for about 10 times this year's earnings — a bargain considering this company's potential for future growth! This company is perfectly positioned to be the stock of the year. I rate MasTec a very strong buy.

NEXT: Small-Cap Stock #3 – Volcano Corp. (VOLC)